USD/JPY still weak, looks to retake 114.00 ahead of NFP

The greenback has recovered part of the ground lost to its Japanese peer on Friday, now sending USD/JPY back to the vicinity of the 114.00 handle.

USD/JPY focus on US data

In spite of the current knee-jerk, the pair remains well on track to close its fourth week with gains, advancing almost uninterruptedly from November’s low in the 101.00 neighbourhood to yesterday’s test of the boundaries of 115.00 the figure.

The outperformance of the US money markets remain supportive of the rally in USD seen in past sessions, with the yield spread differential between the US 10-year and its JGB peer navigating yearly tops.

Later in the NA session, the greenback will remain in centre stage as the BLS will publish November’s Non-farm Payrolls. Market consensus expects the US economy to have created 175K jobs during last month, while the unemployment rate is seen unchanged at 4.9%.

USD/JPY levels to consider

As of writing the pair is losing 0.15% at 113.94 facing the immediate support at 113.59 (low Dec.2) ahead of 113.06 (61.8% Fibo of the 2016 drop) and then 111.32 (low Nov.28). On the upside, a surpass of 114.83 (high Dec.1) would open the door to 114.89 (high Feb.14) and finally 116.86 (78.6% Fibo of the 2016 drop).