Yen rides higher versus USD on robust labour market report

FXStreet (Mumbai) - The Japanese yen stormed its way higher against the US dollar in the early European session, recovering half its slide from the previous session as the yen bulls were boosted by solid jobs data released in early Asia.

USD/JPY stays below hourly 200-SMA

Currently, the USD/JPY traded at 117.85 levels, down -0.39% on the day, having posted fresh daily lows at 117.79 some minutes ago. The pair edged lower, although extending its consolidation between 117.50-118.50 band. The yen gave away previous losses and strengthened versus the greenback as traders shrugged of worries over declining inflation in Japan and cheered upbeat Japanese labour data showing the availability of jobs in Japan rose to the highest level in more than two decades and the jobless rate fell in December.

Meanwhile, the yen is expected to remain elevated versus the greenback so long as USD/JPY holds below the hourly 200-DMA located at 118.04 levels.

USD/JPY Technical Levels

To the upside, the next resistance is located at 118.29 levels and above which it could extend gains 118.56 levels. To the downside immediate support might be located at 117.56 levels, below that at 117 levels.

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