USD/JPY turns neutral at 114.00 mark, awaits NFP for fresh impetus

Having posted a session low at 113.58, the USD/JPY pair managed to recover early lost ground and has now tipped back above 114.00 handle.

Amid prevalent risk-off mood, a tepid late recovery in the Japanese benchmark index, Nikkei 225, could be the primary reason attributed to the pair's recovery. Moreover, traders refrained from carrying big bets, heading into the important jobs report from the US, and could have also contributed to the pair's recovery from session low.

Looking at the broader picture, the pair remains closer to Thursday's 9-month high and hence, the prevalent price-action could be categorized as consolidation following the pair's post-US election sharp up-surge of over 1300-pips. 

Going forward, broader market risk sentiment would continue to be a key driver for the Japanese Yen's safe-haven demand ahead of NFP release later during NA session. 

Technical levels to watch

From current levels, 114.40-45 region might restrict any immediate upside, which if conquered is likely to trigger a sharp up-move immediately towards 114.83 (yesterday's high) en-route 115.00 psychological mark. On the flip side, weakness below session low support near 113.60 region is likely to accelerate the slide towards 113.40-35 horizontal support below which the pair is likely to drift back towards 113.00 round figure mark.