USD/JPY rebounds sharply and hits fresh daily highs above 109.00

• US Dollar rises sharply despite weak NFP data. 
• Yen losses momentum as equity prices and yields bounce. 

The USD/JPY pair bottomed at 108.63 after the release of the US jobs report. Afterward bounced sharply to the upside and recently reached a fresh daily high at 109.26. It was hovering near the highs holding a bullish tone in the very short-term and above the 20-day moving average. 

The yen weakened in the market as US yields turn higher after a brief slide following NFP data. Also, equity price in Wall Street are now higher, after opening in negative territory. 

Labor market data showed that in April the US economy created 164K jobs below the 192K expected; wages rose 0.1% below the 0.2% increase expected. The greenback dropped immediately after the report and the yen peaked. But then reversed, changing the intraday trend. 

Technical levels 

To the upside, resistance levels are seen at 109.45/50 (Apr 26 high), 109.60 and 109.90. On the flip side, supports might be located at 109.05 (20-hour moving average), 108.90 (May 3 low) and 108.60/65 (May 4 low).