USD/JPY: Bulls in control, 114.00 on sight ahead of NFP

The recovery momentum in the US dollar is seen gaining traction alongside ongoing yen weakness across the board, offering double booster shot to the USD/JPY pair.

Over the last hour, however, the spot entered a consolidative mode, as the bulls take a breather and consolidate the rally, in search of fresh direction on the US payrolls data.

The major is on a roll higher, mainly in response to heavy selling seen in the Japanese currency, after the BOJ increased JGB purchases by JPY 50 billion. Yen crosses spike after BOJ announces increase in bond buying

More so, unwinding of the USD shorts positions ahead of the highly-influential NFP data, also helped boost the upside in the USD/JPY pair. Meanwhile, the USD index flirts with daily tops of 95.77, up +0.19% on the day.

USD/JPY Technical levels                 

According to Slobodan Drvenica at Windsor Brokers Ltd., “Firmly bullish studies on daily chart support the price for attempts through 114.00 barrier towards targets at 114.36 (10 May peak) and 114.65 (Fibo 61.8% of 118.65/108.16 descend).
Rising 10SMA continues to track broader advance, offering strong support at 112.80.
US jobs data are eyed for further signals, with acceleration through 114.36/65 targets expected on upbeat results and return towards 112.00/111.80 supports on NFP miss scenario. Res: 114.00; 114.36; 114.65; 115.00 Sup: 113.54; 113.10; 112.80; 112.65.”