USD/JPY retreats, but holds above 115.00 mark post-NFP

The USD/JPY pair trimmed some of its strong gains to multi-week tops, but maintained its bid tone above the key 115.00 psychological mark after the US jobs data.

Today's official employment details showed the US economy added 235K new jobs during the month of February and the unemployment rate ticked lower to 4.7%. The headline number was better-than consensus estimates pointing to a gain of 190K jobs. 

U.S. jobs once again show solid gains

However, the average hourly earnings disappointed for the second straight month and came-in to show a monthly growth of 0.2%, lower than anticipated 0.3% but better-than previous month's tepid 0.1% growth.

Although the mixed jobs report did little to distort market expectations for an imminent Fed rate-hike move next week, but seems to have prompted some profit taking off long-dollar positions.

Meanwhile, a modest retracement in the US treasury bond yields further collaborated to the pair's pull-back from mid-115.00s, the highest level since Jan. 19.

With the key US macro data out of the way, broader market risk sentiment and Fed rate-hike expectations would continue to be key drivers of the pair's movement during NA session.

Technical levels to watch

A follow through retracement below the 115.00 handle seems more likely to trigger a corrective slide towards 114.45 support area before the pair eventually drops back to 50-day SMA support near 114.00 round figure mark.

On the upside, momentum above mid-115.00s, leading to a subsequent strength above 115.60 level (Jan. 19 high) should now pave way for extension of the pair’s strong up-move further towards reclaiming the 116.00 handle.