USD/JPY holding gains to 4-day high around 102.45

The USD/JPY pair maintained its strong bid tone and is building on to its gains above 102.00 handle to currently trade within striking distance of 102.50.

The greenback continues to gain traction, supported by last week’s stronger-than-expected US jobs report that continues to point towards the solid underlying strength in the US labor market, which now seems to provide room for the Federal Reserve to go ahead of raise interest-rates later this year.

Hence, investors will closely scrutinize Fed Chairwoman Janet Yellen's speech at Jackson Hole symposium, scheduled during the later part of August. 

Adding to the upbeat sentiment surrounding the US Dollar, the prevalent risk-on sentiment around equity markets is also extending support to USD/JPY pair.

With only the scheduled release of Labor Market Conditions Index, today's economic calendar is unlikely to distract the major's recovery momentum.

Technical outlook

A team of analysts at AceTrader notes, "initial upside bias is likely to be seen n abv 102. 83 would bring stronger gain to 104.09 (50% r of 107.79-100.68) but reckon 104. 89 (61.8% r) would remain intact. Only below pivotal sup at 100.00 (Jul's low) brings re-test of 99.00, then twd 97.42 (80.9% proj. of 111.45-99.00 fm 107.49)."

"Today, as last Tue's 3-week low at 100.68 was accompanied by 'bullish convergences' on the hourly indicators n Fri's rally abv 101.67 res to 102.06, then 102.26 ahead of Asian open suggests correction of recent decline has taken place for gain twd 102.83 later. Only below 101.37 n risks 101.00/10."