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  • USD/JPY pushes higher and reclaims the 104.00 yardstick.
  • The upside in US yield continues to lend support to the dollar.
  • US Nonfarm Payrolls will be the salient event later on Friday.

The continuation of the upbeat mood in the dollar lifts USD/JPY to fresh 3-week highs above 104.00 the figure at the end of the week.

USD/JPY higher on yield, focused on data

USD/JPY posts gains for the third session in a row so far on Friday, always helped by the renewed and quite moderate recovery in the greenback, which is in turn sustained by rising US yields.

In fact, yields of the key US 10-year benchmark managed to surpass the critical 1.0% barrier and briefly test the 1.10% region for the first time since mid-March 2020.

Earlier in the Japanese docket, the advanced Coincident Index came in at 89.1 for the month of November, while the flash Leading Economic Index is seen improving to 96.6 (from 94.3) in the same period.

In the US calendar, the December’s Nonfarm Payrolls are expected to show a marginal job creation (71K) and the jobless rate is seen ticking higher to 6.8% (from 6.7%). It is worth recalling that the ADP report showed a loss of 123K jobs in the private sector during last month.

USD/JPY levels to consider

As of writing the pair is gaining 0.18% at 103.95 and a surpass of 104.75 (monthly high Dec.2) would aim to 105.67 (monthly high Nov.11) and finally 105.95 (200-day SMA). On the flip side, immediate support is located at 103.53 (21-day SMA) seconded by 102.59 (2021 low Jan6) and then 101.18 (2020 low Mar.9).