USD/JPY eyes upside near 123.00 as DXY strengthens on improved US Jobless Rate

• USD/JPY has attracted bids near 122.00 on firmer DXY.
• Improved US Jobless Rate has raised the odds of a 50 bps interest rate hike from the Fed.
• The Russia-Ukraine negotiations seek an official confirmation of a ceasefire.

The USD/JPY pair has bounced back sharply after a corrective pullback from the last week’s high at 125.10 as investors turned to the mighty greenback on record lows US Unemployment Rate. The pair have established above 122.00 and is displaying a positive open test-drive session on Monday in which a minor weakness at the open gets shrugged off after the asset oversteps the opening price of the trading session.

The US Unemployment Rate reported on Friday has shifted the focus on a jumbo-size interest rate hike by the Federal Reserve (Fed) in May. The Unemployment Rate has landed at 3.6% lowest since February. The major agenda of the Fed is to achieve full employment and the US economy is maintaining it technically amid securing a Jobless Rate below 4% since December. This has raised the odds of an interest rate hike by 50 basis points (bps) in May’s monetary policy significantly. The US dollar index (DXY) has jumped near 98.50.

Meanwhile, the peace talks between Russia and Ukraine is getting progressed as negotiations between Russian leader Vladimir Putin and Ukraine’s President Volodymyr Zelensky after the development of a specific written document are likely to bring a ceasefire soon.

Negotiator David Arakhamia told Ukrainian media that an encounter between Ukraine's President Volodymyr Zelensky and Russian President Vladimir Putin would "with a high probability" inch towards a ceasefire. The nations are approaching a ceasefire verbally however, no official confirmation has come in writing.