USD/JPY firmer near 113.70 ahead of payrolls

The Japanese yen is extension is down move today, helping USD/JPY to climb to the area of 113.70 region, close to session tops above 113.80.

USD/JPY bid ahead of NFP

The pair keeps the rally well and sound on Friday, reverting three consecutive daily declines and now printing fresh multi-week tops around 113.70. Furthermore, spot has almost fully reverted the May-June drop and is currently on its way to close the fourth consecutive week with gains.

The solid up move in USD/JPY has been propped up further by the needle-like ascent in the US 10-year yields, currently trading below the key 2.40% handle, or 8-week peaks.

In addition, headlines citing BoJ buying across the curve have been weighing on the safe haven JPY and driving yields lower, widening the spread the US peers.

Later in the NA session, US non-farm payrolls will be in the limelight along with the unemployment rate and inflation pressures via wage growth, all keeping the buck in centre stage.

USD/JPY levels to consider

As of writing the pair is gaining 0.06% at 113.35 facing the next up barrier at 113.69 (high Jul.5) followed by 114.39 (high May 11) and finally 115.51 (high Mar.10). On the downside, a break below 112.56 (10-day sma) would aim for 112.26 (61.8% Fibo of the May-June drop) and then 111.57 (21-day sma).