USD/JPY jumps to one-week high amid upbeat US data-inspired USD strength

USD/JPY turns positive for the third straight day and climbs to a one-week high.
The upbeat US macro data boost the USD and remains supportive of the move.
A combination of factors could underpin the JPY and cap the upside for the pair.

Haresh Menghani FXStreet

The USD/JPY pair catches some bids during the early North American session and climbs to a one-week high in reaction to the upbeat US macro data. The pair is currently placed just above the mid-133.00s and looks to build on this week's recovery move from its lowest level since June 2022.

The US Dollar strengthens across the board following the release of the better-than-expected US ADP report, which, in turn, pushes the USD/JPY pair higher for the third successive day. In fact, the US private-sector employers added 235K jobs in December against consensus estimates for a reading of 150K. Adding to this, Initial Jobless Claims unexpectedly fell from 223K to 204K during the week ended December 30.

This comes on the back of a hawkish assessment of the FOMC meeting minutes released on Wednesday and triggers a sharp intraday spike in the US Treasury bond yields. This, in turn, provides a goodish lift to the Greenback and acts as a tailwind for the USD/JPY pair. Apart from this, technical buying above the 133.00 mark could also be attributed to the latest leg-up witnessed over the past hour or so.

That said, reports that the Bank of Japan (BoJ) plans to raise its inflation forecasts, could underpin the Japanese Yen and cap the upside. Apart from this, the risk-off impulse, which tends to benefit the JPY's relative safe-haven status, might further contribute to keeping a lid on the USD/JPY pair, at least for the time being. This, in turn, warrants some caution for aggressive bullish traders.

Technical levels to watch

USD/JPY

Overview
Today last price	133.69
Today Daily Change	1.01
Today Daily Change %	0.76
Today daily open	132.68

Trends
Daily SMA20	134.12
Daily SMA50	138.58
Daily SMA100	141.02
Daily SMA200	136.36

Levels
Previous Daily High	132.72
Previous Daily Low	129.93
Previous Weekly High	134.5
Previous Weekly Low	130.78
Previous Monthly High	138.18
Previous Monthly Low	130.57
Daily Fibonacci 38.2%	131.65
Daily Fibonacci 61.8%	130.99
Daily Pivot Point S1	130.83
Daily Pivot Point S2	128.98
Daily Pivot Point S3	128.04
Daily Pivot Point R1	133.63
Daily Pivot Point R2	134.57
Daily Pivot Point R3	136.42

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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