USD/JPY turns neutral, around mid-112.00s ahead of US jobs data

The USD/JPY pair extended its recovery move from 112.00 neighborhood and has now reversed all of its daily losses to currently trade around 112.40-45 band ahead of the US monthly jobs data.

A slight improvement in investors' risk appetite, as depicted by a modest recovery in the European equity markets, commodity prices and flattening US treasury bond yields, prompted investors to move out of traditional safe-haven assets - like the Japanese Yen.

With the key US Dollar Index placed at fresh session tops near 98.80 region, traders also seemed to lighten their bearish USD bets and further collaborated to the pair's recovery move from session lows. 

From a technical perspective, the pair is rebounding from previous strong hurdle now turned immediate support and thus, resumption of prior appreciating move, even on the back of in-line with estimates headline NFP print, still remains a distinct possibility. 

   •  US employment data and Fed speeches are awaited - BBH

Apart from the headline numbers, average hourly wage growth would also be one of the important details that would be looked upon from today's employment report. 

Technical outlook

Omkar Godbole, Analyst cum Editor at FXStreet writes, "only a daily close above the falling channel resistance of 113.00 would signal the end of the sell-off from the high of 118.66 and could yield a fresh rally to 115.00-115.52 (Mar 3 high)."

"Bearish scenario - Yesterday’s failure at the falling channel resistance if followed by a daily close today below the 50-DMA level of 111.68 would open up downside towards 110.00 levels" he added.