USD/JPY stays bid above 117.00

The US dollar remains bid in Asia, keeping the Dollar-Yen above 117.00 after the Friday’s US data showed job growth slowed in December, but wages rose at a fastest rate since the financial crisis.

Thursday’s sell-off almost undone

The Dollar was back in demand on Friday after the strong wage growth numbers pushed up the treasury yields. The 2-year yield ended 3.6 basis points higher, while the 10-yr yield added 5.3 basis points.

Moreover, the pair managed to recover almost entire losses seen on Thursday. The Japanese markets are closed today; hence, the trading volumes could be low in the Asian session.

Later in the US session, speech from Fed’s Rosengren and Lockhart could influence the overall the dollar demand.

USD/JPY Technical Levels

The spot was last seen trading above 117.12. A break above Thursday’s high of 117.43 could yield a re-test of 118.19 (Wednesday’s high), above which the recent high of 118.61 could be put to test. On the downside, the support at 116.04 (Dec 30 low) would come into play if the spot fails to hold above 117.00 (zero figure) levels. Below 116.04, the spot could find support at 115.07 (Friday’s low).