USD/JPY has shown a good amount of strength recently climbing from 113.65 to now above 115.00. Yesterday USD Unemployment claims were published at it was a bit higher than expected at 239k but was published at 243k and JPY Average Cash Earning report was expected to be 0.3% but was published at 0.5%, the economic not quite affect the gains of USD that much yesterday. Today JPY had BSI Manufacturing Index report where the expectation was at 8.4 but the report was published at 1.1, a big downturn in this event. On the other hand, today is most important day for USD as Non-Farm payroll report is going to published which is expected to be at 200k which previously was at 227k, Unemployment rate is expected to be at 4.7% which previously was at 4.8% and Average Hourly Earning is expected to be at 0.3% which previously was at 0.1%. As of important events of USD, the pair is expected to be very volatile during the events and the volatility will describe the upcoming moves for the next week.
Now let us look at the technical view, the price is currently residing above 115.00 and it is expected that the price will fall back toward nearest support at 114.75 and then if any bearish rejection is observed we will look to buy with a target toward 118. On the other hand, if the price breaks below the support 114.75 with a daily close and remains below, then the bias will be changed to bearish with a downward target toward 113.65.
