USD/JPY struggles to take-out 103.70, awaits NFP

USD/JPY reversed more-than half of yesterday’s ISM data-led slump and now looks to consolidate the recovery ahead of the US payrolls data due ahead of the US open this Friday.

USD/JPY supported at 103.50

The dollar-yen pair fails several attempts to take out strong offers lined up around 103.70 region, as the US dollar stalls its recovery mode against a basket of currencies. The US dollar index took on a minor-recovery earlier on the day, after having booked heavy losses in response to worse-than expected US ISM manufacturing PMI report.

However, the major keeps gains and hovers near the upper band of today’s trading range, as positive tone in the European equities helps keep the sentiment buoyed. At the time of writing, USD/JPY trades 0.39% higher at 103.62.

Focus now shifts towards the all-important US non-farm payrolls data due later in the NA session, while trade and factory orders data from the US docket will be also closely eyed.

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).