USD/JPY hits fresh multi-week highs near mid-115.00s

The USD/JPY pair built on its break-out momentum through 50-day SMA strong hurdle and continued scaling higher, further beyond the 115.00 psychological mark.

Currently trading around 115.40-45 region, the highest level since Jan. 19, the pair continued gaining traction on Friday after the Japanese Business Sentiment Index fell to 1.1 for the first-quarter of 2017. The reading was well-below consensus estimates and worse than 7.5 recorded in the previous quarter.

This coupled with continuous up-surge in the US treasury bond yields, helped the major to build on to previous two session's strong up-move led by impressive report on the US private sector employment details. 

US 10-year treasury yield hit 12-week high

Wednesday's strong ADP report suggests that the official NFP data, due for release later during NA session, would print a solid headline number and eventually help the greenback to extend its recent upward trajectory.

Meanwhile, improving investors' risk-appetite, as depicted by positive trading sentiment around equity markets, further weighed on the Japanese Yen's safe-haven appeal and collaborated to the pair's strong surge to 7-week tops. 

Technical levels to watch

A follow through buying interest beyond 115.65 (Jan. 19 high) now seems to pave way for continuation of the pair's strong bullish momentum further towards the 116.00 handle ahead of 116.55 resistance. 

On the downside, the 115.00 handle now turns immediate support to defend, which if broken is likely to drag the pair back towards 114.45-40 support area, en-route the 50-day SMA support near 114.00 round figure mark.