USD/JPY corrects to 100-DMA ahead of NFP release

The USD/JPY pair once again faced rejection at 104.00 handle and is now extending its retracement from over one-month highs.

Currently hovering around 100-day SMA near 103.70-65 region, the pair snapped eight straight sessions of winning streak as renewed weakness in the British Pound seems to have turned investors nervous and is extending support to the Japanese Yen's safe-haven appeal. 

Rising market expectations that the Fed will raise interest rates by the end of this year, accompanied with buoyant investor sentiment, has been the key driver of the pair's up-move from the vicinity of 100.00 psychological mark touched in the previous week. Hence, market focus would remain on today's release of monthly jobs report from the US, which will be looked upon to determine the timing of next Fed rate-hike action and would help investors to determine the pair's next leg of directional move. 

Technical levels to watch

Immediate downside support is pegged at 103.50 level below which the pair could drift to 103.20 before breaking below 103.00 handle and heading towards 102.80-70 support area.

On the upside, 104.00 handle might continue to act as immediate hurdle, which if cleared has the potential to lift the pair immediately towards September monthly high resistance near 104.30 region ahead of 104.60-65 horizontal resistance.