USD/JPY firmer, extends above 118.00

By FXStreet FXStreet (Edinburgh) – The greenback is now looking to consolidate the break above the 118.00 handle vs. the Japanese currency, taking USD/JPY to the 118.40/45 area.

USD/JPY focus on Payrolls

After bottoming out in fresh multi-month lows near 117.30 on Thursday, spot has managed to pick up pace and retake the 118.00 limestone and advance beyond 118.50 so far. The risk appetite has taken over global sentiment today, relegating – at least for the time being – the risk aversion and thus removing an important tailwind for the safe haven yen.

Next of relevance for the pair will be US Non-farm Payrolls, where consensus expects the economy to have added 200K jobs during December, while the unemployment rate is seen stable at 5.0%.

USD/JPY levels to consider

As of writing the pair is retreating 0.64% at 118.34 and a breakout of 120.77 (high Dec.30) would open the door to 120.91 (100-day sma) and finally 121.62 (200-day sma). On the flip side, the immediate support lies at 117.30 (psychological level) followed by 116.46 (low Aug.24) and then 115.82 (low Jan.16 2015).
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Source:: FX Street