USD/JPY catches fresh bid, re-takes 113.00

• Closer to 113 handle.
• Rallies in sync with the Nikkei 225.
• Will it hold the upside ahead of NFP?

The USD/JPY pair extends its rebound into a third day today, reaching the highest levels in five days at 113.00 amid a recovery in risk sentiment.

USD/JPY trades above all major DMAs

The spot regains poise heading into Europe, as the safe-haven Yen faces renewed selling pressure after the latest comments from the Japanese officials, including PM Abe, boosted the sentiment around the Japanese stocks. The Nikkei 225, Japan’s benchmark index, rallies nearly 1% to trade near 23,700 levels.

Meanwhile, the major remains resilient to broad-based US dollar weakness and the latest North Korea risks, as risk-recovery remains the key theme in early Europe. However, it remains to be seen if the pair sustains the upmove ahead of the US payrolls release.

USD/JPY Technical View

Valeria Bednarik, Chief Analyst at FXStreet, noted, “In the 4 hours chart, the pair is stuck between horizontal moving averages, with the 100 SMA offering a short-term resistance around 112.90. In this last chart, the Momentum heads sharply higher above its 100 level, while the RSI hovers around 56, supporting some further advances on a break above 113.00. Support levels: 112.55 112.10 111.70. Resistance levels: 113.00 113.45 113.80.”