The greenback is trading on a firmer footing vs. its Japanese counterpart at the end of the week, taking USD/JPY to test the 113.80/85 band.

USD/JPY looks to Payrolls

The pair is posting gains for the second consecutive session so far although it remains trapped within the 112.115 range that has been prevailing since last week. Despite yesterday’s sell-off in the US dollar, spot has managed to keep the upside momentum alive and extend the rebound from Tuesday’s troughs in the 112.00 neighbourhood.

Ahead in the session, the lack of volatility and cautious trade are poised to take over sentiment in light of the upcoming US Non-farm Payrolls, where consensus sees the economy creating nearly 200K jobs during February.

USD/JPY levels to consider

As of writing the pair is advancing 0.26% at 113.92 and a breakout of 114.56 (high Mar.3) would aim for 114.89 (high Feb.16) and then 115.09 (38.2% Fibo of 121.70-110.98). On the other hand, the next support lines up at 112.14 (low Mar.1) followed by 110.98 (low Feb.11) and finally 105.18 (monthly low Oct.2014).

The greenback is trading on a firmer footing vs. its Japanese counterpart at the end of the week, taking USD/JPY to test the 113.80/85 band…

(Market News Provided by FXstreet)

By FXOpen