The US Dollar surged slightly higher against the Japanese Yen after US factory growth beat market expectations despite labor supply constraints and higher raw materials prices. Moreover, the Philadelphia Fed Bank President Patrick Harker said that if the US economy continues to recover from the Covid-19 pandemic, and if the job market recovers, then it may be time for tapering, however the sensitive subject didn’t boost USDJPY as much as I expected yet, as traders are likely waiting for NFP data tomorrow to gauge market sentiment, and to see whether the US job market is truly recovering at a fast pace or not.
From a technical perspective, the USDJPY remains bullish above both the 4h 50-MA and 4H 200-MA with ¥110.20 as my next upside target.
Support: 109.70/109.35.
Resistance: 110.20/110.90.
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