USD/JPY back above 103.50 in pre-NFP trading

After Thursday's brief pause, the USD/JPY resumed with its near-term bullish momentum and is now building on to its gains to currently trade around mid-103.00s.

The pair on Thursday was rejected from 104.00 handle and reversed sharply after US ISM manufacturing PMI signaled contraction in August. The reversal, however, was limited and the pair has managed to hold 103.00 handle amid rising expectations of additional monetary stimulus by BoJ. 

Investors now turn their focus on the much-awaited US non-farm payrolls data, later during NA trading session, which is an important factor in the Fed next monetary policy action and hence, would be a key determinant for the greenback's near-term trajectory. 

Technical levels to watch

On the immediate upside, 103.95-104.00 region remains immediate strong hurdle, which if conquered should assist the pair immediately towards 104.50 resistance area before eventually reclaiming 105.00 psychological mark and aim towards testing its next major resistance near 105.35-40 region.

On the flip side, 103.00 handle has emerged as immediate support, which if broken should now open room for an immediate slide back towards 50-day SMA resistance break-point turned support near 102.65-60 region. A follow through selling pressure is likely to turn the pair vulnerable to resume its near-term depreciating move and drift towards sub-101.00 support area.