USD/JPY rises toward 145.00 as US yields climb further

• US Dollar losses impulse,holds onto important daily gains. 
• US economic data surpasses expectations, the focus turns to NFP.
• USD/JPY rises more than a hundred pips from weekly lows.  

The USD/JPY rose further during the American session and following US economic data. The pair peaked at 144.84, hitting a fresh daily high, 136 pips above the Asian session low.

The rebound in USD/JPY took place amid a stronger US dollar across the board. After an initial impulse to 144.55, the pair consolidated until the US ISM report, that surpassed expectations. The dollar jumped finding resistance around the 144.85 area and pulled back.

The 144.90 zone continues to be a critical resistance area and a break higher should open the way for 145.00 and more. On the flip side, a slide below 144.50 should weaken the dollar in the very short term. Then emerges the 143.70 zone, a critical support.

Better-than-expected economic data from the US on Wednesday helped the greenback. Private jobs rose by 208K in September according to ADP, above market expectations of 200K. ISM Services PMI came in at 56.7, above the expected 56 with the Employment Index rising unexpectedly from 50.2 to 53. On Friday, the US official employment report is due; market consensus is for an increase in payroll by 250K.

Higher US yields supported the move to the upside in USD/JPY. The US 10-year rose from 3.62% to 3.78% while the 2-year hit 4.20%. More recently, an improvement in risk sentiment added support to the pair.  US stocks move off lows, trimming losses.

Technical levels