USD/JPY bulls eyeing a move beyond 113.00 handle, NFP in focus

The USD/JPY pair extended previous session's up-move from closer to weekly lows and is now looking to build on its strength beyond the 113.00 handle. 

The already bullish sentiment surrounding the US Dollar got an additional boost after The House of Representatives passed the budget on to Senate and moved one step closer to tax cut plans. 

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Moreover, a fresh wave of global risk-on trade was further seen weighing on the Japanese Yen's safe-haven appeal and eventually driving the pair higher on the last trading day of the week. 

Meanwhile, the market seems to have largely ignored today's better-than-expected wages data from Japan, showing average cash earnings growth of 0.9% y-o-y during August. 

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It, however, remains to be seen if bulls remain in control and help the pair to conquer an important supply zone near the 113.20-25 region as market participants now brace for the release of keenly watched US monthly jobs report. 

Although today's highly anticipated NFP data is unlikely to alter the Fed's plan to continue with its gradual monetary policy tightening cycle, it would still influence the USD price dynamics and provide fresh directional impetus for the major.

   •  US: NFP Preview – Goldman Sachs

Technical levels to watch

Immediate resistance remains near 113.20-25 area, above which the pair is likely to accelerate the up-move towards the 113.50-55 region before eventually darting towards the 114.00 handle.

On the flip side, 112.75-70 zone now seems to protect immediate downside, which if broken is likely to drag the pair immediately towards weekly lows support near the 112.35-30 region en-route 200-day SMA support near the 112.00 handle.