USD/JPY off highs, around 116.50 on US data

The greenback keeps its firm note vs. the Japanese safe haven at the end of the week, taking USD/JPY to the mid-116.00s following further US releases.

USD/JPY boosted by data

Spot is reverting two consecutive pullbacks today, including yesterday’s drop to fresh 3-week lows in the 115.20 area following an increasing selling pressure around the buck, intensified after the FOMC minutes on Wednesday

Data wise today, USD was further supported by results in the US labour market. In fact, the US economy added less jobs than initially estimated during December (156K vs. 178K exp.), although a positive surprise in Average Hourly Earnings – a gauge of wage inflation – offset the initial disappointment.

Further data saw Factory Orders contracting at a monthly 2.4% in November, while speeches by Chicago Fed C.Evans (voter, dovish) and Richmond Fed J.Lacker (2018 voter, hawkish) are due later.

In the meantime, the pair remains well underpinned by the performance of US 10-year yields, which are up more than 1% so far today, coming up from Thursday’s dip.

USD/JPY levels to consider

As of writing the pair is advancing 1.06% at 116.58 facing the next resistance at 117.02 (20-day sma) ahead of 118.67 (high Dec.15) and finally 121.70 (2016 high Jan.21). On the other hand, a breach of 115.20 (low Jan.5) would aim for 114.71 (low Dec.14) and then 114.54 (23.6% Fibo of the November-December up move).