USD/JPY recovery capped below 103.50, NFP in focus

USD/JPY’s ongoing winning streak lost legs at 104 handle a day before, with the major now defending moderate gains on 103 handle ahead of the US payrolls data due later today.

USD/JPY holds well above 5-DMA at 102.98

The dollar-yen pair attempted a minor-recovery in the Asian session this Friday, although the recovery lacked follow-through, despite dovish comments from BOJ’s board member Sakurai.

The upside in the major remains capped also as a weaker US manufacturing sector data continues to weigh on the USD markets, while investors now shift their attention towards the US labour market report due on the cards later in the NA session. At the time of writing, USD/JPY trades 0.11% higher at 103.33, having deflated from 103.44 highs.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 104 (psychological levels). A break above the last, the major could test 104.70 (100-DMA). While to the downside, the immediate support is seen at 102.98 (5-DMA) and below that at 102.70 (50-DMA).