USD/JPY flirting with tops around 113.00, NFP eyed

The rally in the greenback stays unabated today and is now pushing USD/JPY to the upper end of the range around the 113.00 handle.

USD/JPY attention to payrolls

The healthy up move in yields in the US money markets continue to lend support to the pair, which is currently challenging recent peaks beyond 113.00 the figure seen earlier in the week and in late September.

In fact, yields of the US-10 year reference tested fresh 3-month tops above the 2.37% level during early trade and are now looking to consolidate in that region ahead of key releases in the US docket.

Later in the NA session, the greenback should stay under scrutiny in light of September’s non-farm payrolls, jobless rate and wage inflation gauges.

In addition, Atlanta Fed R.Bostic (2018 voter, centrist), Boston Fed E.Rosengren (2019 voter, hawkish), NY Fed W.Dudley (permanent voter, dovish), Dallas Fed R.Kaplan (voter, hawkish) and St. Louis Fed J.Bullard (2019 voter, centrist) are all due to speak.

USD/JPY levels to consider

As of writing the pair is advancing 0.15% at 112.98 facing the immediate hurdle at 113.19 (high Oct.3) followed by 113.27 (high Sep.27) and finally 113.60 (high Jul.14). On the other hand, a break below 112.58 (10-day sma) would open the door to 112.33 (low Oct.4) and then 111.93 (200-day sma).