USD/JPY hits fresh 5-week high but remains under 115.00

USD/JPY rose back toward the 115.00 area and printed a fresh daily high at 114.95, after rebounding from the 20-hour moving average that stands around 114.50/60. 

The pair remains unable to break the 115.00 handle and currently trades at 114.80/85, 50 pips above Wednesday’s closing price. Since yesterday it has gained almost a hundred pips on the back of better-than-expected US economic data. 

Today initial jobless claim showed an increase above market consensus, but it was offset by the upbeat ADP report yesterday. Tomorrow will be the turn of the NFP. 

The yen remains weak in the currency market and today is among the worst performers. Rising US bond yields and risk appetite affected the demand for the yen. 

Technical levels 

To the upside, resistance levels could be seen at the immediate barrier at  115.00 followed by 115.35/40 (Jan 20 & 27 high). On the flip side, support could be located at 114.60 (20-hour moving average), at 114.25 (daily low) and 113.75 (Feb 20 high).