USD/JPY consolidates ADP-led gains near 114.50

The USD/JPY pair remains better bid in tandem with the US dollar, as it consolidates heavy gains backed by an unexpected rise in the US ADP jobs data released a day before.

The spot retreated sharply from daily tops reached at 114.59 levels, as a renewed risk-off wave gripped the markets, following the release of poor Chinese CPI figures.

However, positive tone seen around the treasury yields so far this session, with the 10-year yields hovering near three-month highs, keeps the sentiment buoyed around USD/JPY.

In the day ahead, the major will get influenced by risk trends and USD dynamics ahead of the US datasets lined up for release in the NA session.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 114.59/65 (Daily high/ Fib R1). A break above the last, the major could test 114.78 (Mar 3 high) and 114.97/115 (Feb 15 high/ psychological levels) beyond the last. While to the downside, the immediate support is seen at 114.19/09 (100-DMA/ 5-DMA) next at 113.57/42 (50 & 10-DMA) and below that at 113.06/113 (Feb 16 low/ zero figure).