USD/JPY stable above 113.00 handle, awaits NFP for fresh impetus

After an initial slide to mid-112.00s, the USD/JPY pair gained some traction and was seen building on to its recovery move back above 113.00 handle.

Currently trading around 113.10-15 region, the pair recovered from early loss closer to Thursday’s two-month during early Asian session after BoJ's bond buying program fell short of market expectations and lifted the 10-year JGB yields. 

The pair, however, quickly rebounded from lows as bears took a breather in pre-NFP repositioning trade. The recovery, however, lacked momentum as investors' await the release of keenly watched US monthly jobs report, which might provide fresh clues over the timing of next Fed rate-hike action and eventually help determine the pair’s next leg of directional move. 

Technical levels to watch

A follow through buying interest above 113.25 level is likely to assist the pair to extend its recovery move towards 113.75-80 horizontal resistance, en-route 114.00 round figure mark.

On the downside, weakness back below 112.80 horizontal level could drag the pair back towards session low support near 112.50 region below which the pair is likely to turn vulnerable to head back towards two-month lows support 112.15-05 region.