USD/JPY unable to rally above 114.00

After reaching a fresh daily high at 114.13, USD/JPY pulled back to 113.85 and now is again hovering around 114.00, slightly above yesterday’s closing price. 

The pair still holds a modest bullish bias in the short-term, supported by an uptrend that lies at 113.80. The upside remains limited above 114.00. 

For the second day in a row, price action remained limited in a 50-pip range. Traders appear to be waiting for US labor market data and also to what the Federal Reserve will announce next Wednesday (Mar 15). 

On Wednesday, GDP data from Japan will be released and in the US the ADP employment report. “Feb ADP payrolls will provide a guide to jobs momentum ahead of Friday’s nonfarm payrolls release. Another robust gain is anticipated, circa 180k, following an outsized rise in January of 246k”, wrote analysts from Westpac. 

Tuesday has been a quiet day across financial markets, with most price assets moving in minor ranges. In Wall Street, the Dow Jones was falling 0.09% while the S&P 500 was down 0.17%. Crude oil was unchanged around $53.00 while US bond yields rose modestly. The exception was gold (XAU/USD) that lost $10 falling to $1214/oz, to the lowest level in four weeks. 

USD/JPY technical levels 

To the upside, resistance levels might be seen at 114.15 (daily high), 114.55/60 (Mar 02 high) and 114.75 (Mar 03 high). On the flip side, support could be seen at 113.80 (short-term uptrend line), 113.55 (Mar 06 low) and 113.25 (Feb 20 high).