The USD/JPY pair extended gains on the back of risk-on tone in the markets and the bulls are now eyeing 114.48 (23.6% of May 15 high-Feb 16 low).
Eyes US ADP data
The traders await the US ADP monthly private sector payrolls report, which would shape up expectations surrounding the Friday’s non-farm payrolls report.
Ahead of the data, the demand for the JPY could be influenced by the action in the European stock markets.
The Asian equities soared to two-month high and the major European index futures are pointing to a positive open. Consequently, the bulls appear on track to take the USD/JPY pair higher to 114.48 levels.
USD/JPY Technical Levels
The spot currently trades around 114.25 levels. A break above the immediate hurdle at 114.48 (23.6% of May 15 high-Feb 16 low) would be needed to see the pair test offers around 115.97 (Jan 20 low). On the other hand, a break below 114 could see prices drift lower to a major support at 113.07 (10-DMA).
(Market News Provided by FXstreet)