USD/JPY: Stronger bullish case once above the 110.10 mark

USD/JPY keeps seesawing between gains and losses, holding on to higher ground this Thursday, as waits for US employment data. The pair lacks directional momentum while below the 110.10 level, as FXStreet’s Chief Analyst Valeria Bednarik notes.

The focus is on US employment data ahead of the Nonfarm Payrolls report

“Market participants are in a cautious mood, waiting for US employment-related data ahead of the US Nonfarm Payrolls report to be out on Friday. 

“Higher inflation has spurred speculation that the Federal Reserve will have to tighten its monetary policy ahead of planned. Policymakers have poured cold water on the matter, but some recently indicated that they are open to kick-start discussing trimming bond-buying.”

“The US will publish Initial Jobless Claims for the week ended May 28, foreseen at 395K, and the ADP survey on private jobs creation, expected at 650K. Later into the session, the country will release the official ISM Services PMI, foreseen at 63 from 62.7 previously.”

“Further gains are possible on a break above 110.10, the immediate resistance level.”