Tough to break levels ahead of non-farm payrolls
USD/JPY touched 114.97 at the high today. That was one pip above the February high but it's since retreated back to 114.75.
It's no surprise to see a bit of shyness in the pair ahead of a big level with non-farm payrolls 20 hours away. The market is expecting a good report in terms of jobs created but whether USD/JPY can sustain the bid will depend on wage growth.
If there's a good jobs number and improved wage growth, expect to see a breakout to the topside and that would confirm the double bottom just below 112.00. A simple measured target would then be close to the Dec/Jan highs at 118.00.
Provided the data is good, I'd expect to see it sooner rather than later but, again, there could be some shyness until Wednesday's Fed meeting.