USD/JPY jumps to fresh weekly tops, around mid-109.00s

   •  USD adds to overnight modest gains.
   •  Fading safe-haven demand lends additional support.
   •  US ISM PMI might provide some trading impetus.

The greenback built on its post-FOMC modest recovery move and pushed the USD/JPY pair to fresh weekly tops, around mid-109.00s. 

The pair built on the overnight bullish break through the 109.00 handle and traded with a positive bias for the third session in the previous four, rebounding over 100-pips from weekly lows touched on Tuesday. 

Against the backdrop of Wednesday's ADP report, the latest FOMC policy update signalled central bank's confidence about inflation and provided a minor boost to the US Dollar. 

Adding to this, improving investors’ appetite for riskier assets, as depicted by signs of stability in the equity market, was further seen weighing on the Japanese Yen's safe-haven appeal and further collaborated to the pair's strong up-move on Thursday.

Investors now look forward to Friday's keenly watched US monthly jobs report (NFP) for some fresh directional impetus. In the meantime, today's US economic docket, highlighting the release of ISM manufacturing PMI should assist traders to grab some short-term trading opportunities.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes, “the spot looks set to test 109.80 (trendline hurdle) and 110.00 levels in the next 24-36 hours.”

“However, a convincing move above 110.00 looks difficult for now as the moving averages on the above chart - 50-MA, 100-MA and 200-MA are trending lower - indicate bearish setup. The downward sloping 50-MA is seen at 109.45. Also, the 10-day MA is yet to bottom out.”