USD/JPY retreats from highs, around 110.10 ahead of payrolls

The greenback is sticking to its daily gains vs. the Japanese currency on Friday, taking USD/JPY to a narrow range near 110.10.

USD/JPY focus on NFP

After testing weekly highs in the 110.60/70 band on Thursday, the pair is now looking to stabilize near the key handle at 110.00 the figure ahead of key releases in the US docket.

The up move in spot is being sustained by the rebound in yields in the US money markets, where the key 10-year reference is hovering over the 2.13% area after briefly dropping below 2.12% on Thursday.

Ahead in the session, final US manufacturing PMI is due followed by non-farm payrolls, the ISM manufacturing and the Reuters/Michigan index.

USD/JPY levels to consider

As of writing the pair is gaining 0.15% at 110.13 and a breakout of 110.67 (high Aug.31) followed by 110.95 (high Aug.16) and finally 111.18 (55-day sma). On the other hand, the next support emerges at 109.79 (21-day sma) followed by 109.74 (23.6% Fibo of 114.51-108.27) and finally 109.60 (10-day sma).