USDJPY: Pair Consolidates, in Anticipation of Labour Market Data

The USDJPY pair dropped on Thursday, despite rising yields. It seems to be consolidating from Friday morning, with investors waiting for today's US labour market data. The greenback was flattish against the yen and, it traded at around 113.85 during the midday trading session.

Thursday brought with it risk-aversion in the financial markets, which sent the USDJPY pair lower. The short-term bullish trend line is currently at around 113.70 and, as long as the pair remains above, the short-term outlook still appears to be bullish.

If this support doesn't hold, the greenback could deteriorate to 113.10, where previous swing highs are located. From a medium-term perspective, the US Dollar should stay above this level to keep the bullish trend intact.

Bulls could push the pair back above the resistance of 114.05, if they want to attack the current cycle highs at 114.50. These two resistances will be the key levels to watch over the next couple of days. Should the pair jump above 114.50, the medium-term bullish trend should be confirmed, and the next target could be at 115.00.

Very positive US data and soaring yields have been pushing this pair sharply higher in recent days and, this trend could continue after today's non-farm payrolls.

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