USD/JPY: stuck below 113 psychological figure awaiting the nonfarm payrolls

Currently, USD/JPY is trading at 112.83, up 0.01% on the day, having posted a daily high at 112.90 and low at 112.76.

USD/JPY rallied to 112.92 on strong US data and higher yields, but it was still unable to cross the 113 line nor hold onto bids on the handle. 

US Durable goods orders for August were finalised at +2.0% (vs 1.7% expected) while the US factory orders rose 1.2% in August (vs 1.0% expected), with data less affected by the hurricanes than what had been anticipated previously.  

Added to the mix of reasons to buy the USD/JPY on dips were Fed speakers Williams and Harker, early on in the shift, then Fed's George later on on the handover. 

Nonfarm Payrolls Preview: sour numbers to have limited impact of Fed's decision

The three were upbeat on the outlook for the US economy and said roughly the same thing, that the outlook warranted one more hike this year and another three to follow in 2018. The Fed fund futures yields firmed slightly to price the chance of a December rate hike at 84%. 

Wall Street rallies to record highs as data points to strengthening US economy

Underpinning US stocks on Wall Street on Thursday was The House of Representatives passing the budget on to Senate, paving the way for tax cuts by a simple majority vote.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the short-term picture is neutral according to the 4 hours chart.

"After a brief slide into negative territory, technical indicators have returned to neutral territory, with no clear directional strength, whilst the price keeps developing above its 100 and 200 SMAs, which limit the bearish potential."