USD/JPY consolidates gains around 104.00

USD/JPY has moved higher on Thursday, with the pair breaking above the 100-day SMA for first time in eight months amid firming expectations of tighter policy by the Fed.

Easing risk aversion has added pressure on the safe-haven yen, sending USD/JPY to a 1-month peak of 104.15 during the New York session. However, the dollar failed to hold above the 104 level for long. The pair was last trading at 103.94, recording a 0.45% daily gain.

Main focus  no turns to nonfarm payrolls report to be published on Friday, which is expected to show a 172K job gain in September.

USD/JPY levels to watch

In terms of technical levels, next resistances could be found at 104.30 (Sep 2 high), 105.00 (psychological level) and 105.56 (Jul 29 high). On the other hand, supports are seen at 103.68 (100-day SMA), 103.34 (Oct 6 low) and 102.65 (Oct 5 low).