The greenback traded higher against its major peers on Friday, supported by the mixed US labor market update. At the time of writing, the USDJPY pair was around 113.50, up nearly half a percent on the day.

Volatility rose after the latest US labor market data, which showed the US economy created only 210,000 jobs in November, the smallest monthly increase since December and well below the expectations of 550,000.

Still, as CNBC's Steve Liesman notes, this number does seem suspect because the BLS has revised up each of the prior six payrolls reports (including +235,000 with last month's release). It is thus probable that this month will also be revised higher.

The unemployment rate improved notably to 4.2%, down from 4.6% in October. At the same time, average hourly earnings stayed at 4.8% year-on-year (against expectations of 5.0%). The USD initially declined after the data, but losses were temporary, and the dip was quickly bought.

Later in the day, the Services ISM survey for November is due, expected to decline slightly to 65.0 from 66.7 previously. In addition, the prices paid (inflation) subindex will likely decelerate marginally to 80.9 from 82.9 previously.

The next resistance seems to be located in the 114.00 zone. Should US yields continue to rise, the USDJPY pair might be well supported. The current cycle highs above 115 could be attacked again this year.

Alternatively, the first demand zone appears to be in the 113 regions, followed by the strong support in the 112 area. The medium-term outlook remains bullish.

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