USD/JPY pushes to daily highs after initial drop post-NFP

The USD/JPY pair recorded a 30-pip drop despite the positive NFP data but quickly recovered its losses and moved back into the positive area. In fact, the pair reached its session high at 112.70 and is now trading at 112.60, up 12 pips, or 0.11%, on the day.

• US: Total nonfarm payroll employment increased by 211,000 in April

Following the knee-jerk slip to 98.55, the US Dollar Index seems to have settled down in 99.70 neighborhood ahead of a slew of Fed speakers. Fed Chair Yellen's speech at a Brown University event to commemorate "125 years of women at Brown" is unlikely to provide any remarks on the monetary policy statement. However, before Yellen, Vice Chair S.Fischer along with San Francisco Fed J.Williams (2018 voter, hawkish) and Boston Fed E.Rosegren (2019 voter, hawkish) will be crossing the wires at a panel on "The Structural Foundations of Monetary Policy," which could bring fresh insights on the Fed's policy path following its latest meeting on Wednesday.

• US: April NFP report won't change minds – BBH

In the meantime, the major equity indexes in the U.S. had a mixed start on Friday, suggesting an unclear market sentiment. The Dow Jones Industrial Average losing 0.09% and the S&P 500 gaining 0.14% as of writing. 

Technical outlook

The USD/JPY pair is moving dangerously close to its 100-DMA at 112.50. A break below that level could open the door to 111.95 (May 3 low) and 111.30 (50-DMA). On the flip side, 113.05 (May 4 high) could be seen as the first technical resistance ahead of 113.50 (Mar. 17 high) and 114.00 (psychological level).