As new inflation data added to rate-hike speculation, boosting the US currency higher, the USD/JPY currency pair reached the ¥120 level and is poised to rise further if US labor data does not shock market negatively this week.
Monday's Core Price Consumption Expenditures (PCE) index showed new three-month high, reaching 1.4% on a yearly basis, being the most optimistic among Monday's data.
Market turns its attention to Wednesday's ADP employment data and top-regarded Friday's non-farm payrolls (NFP) data, both showing monthly change of employment. Moreover, with NFP, fresh unemployment rate is about to be published. We expect to dollar to reach ¥121.36 again, while another resistance level could be seen at ¥121.91. As for supports, except for ¥119 level, we can see on at ¥118.37.