USD/JPY clocks 3-1/2 week high, eyes US data

• USD regains bid tone, tracking the rise in the treasury yields.
• USD/JPY jumps to 3-1/2 week high.
• Focus on US wage growth data.

USD/JPY rose to 113.39 in Asia; its highest level since Nov, 14, tracking the overnight rise in the treasury yields.

The currency pair witnessed an inverse head and shoulders breakout as the 10-year treasury yield rose from 2.32 percent to 2.38 percent. The bullish technical breakout has opened doors for a rally to at least 114.00 levels.

However, US wage growth data, due today at 13:30 GMT, could make or break the pair. The official numbers are expected to show the economy added 200K jobs in Nov. and wage growth ticked higher to 0.3 percent month-on-month. A better-than-expected wage growth number could lift the USD/JPY pair to 11400 levels.

USD/JPY Technical Levels

AceTrader Team offers an Intraday view on the USD/JPY pair as follows-

Dlr's intra-day gain to a 3-week high of 113.39 ahead of Tokyo lunch break on rising Asian stocks (N225 has risen by over 1% n last traded at 22772) and firm U.S. yields due to market optimism U.S. tax reform will be passed by the Dec 22 deadline suggests further gain would be seen in European trading, so buying on dips is the way to go ahead of release of key U.S. jobs data. 

Bids have been raised to 113.10-00 and more at 112.80 with stops below 112.50. Some offers are tipped at 113.40/50 and more above with stops above 113.90.