USD/JPY digesting recent strong gains to monthly highs

The USD/JPY pair was seen consolidating recent strong gains to 4-week high level near mid-103.00s, awaiting for fresh impetus from Friday's jobs data from the US. 

Wednesday's release of stronger-than-expected US ISM non-manufacturing PMI negated disappointment from ADP report and helped the pair to extend its break-out momentum for the seventh straight session. 

With the overall US Dollar Index bouncing between tepid gains and minor losses, the pair has been confined in a narrow trading range just below 100-day SMA as traders now look forward to the September non-farm payrolls data, slated for release on Friday, which could provide some clarity over the timing of next Fed rate-hike move and drive the greenback in the near-term. 

A relatively thin US economic docket, featuring the release of weekly jobless claims, is unlikely to provide any meaningful momentum and the bulls might take a breather while taking cues from the overall risk sentiment.

Technical levels to watch

On the upside, 103.70 (100-day SMA) is likely to act as immediate resistance, which if conquered sets the stage for an immediate up-move towards 104.00 round figure mark ahead of September monthly high resistance near 104.30-32 area. 

Meanwhile on the downside, weakness below session low support near 103.30 level could drag the pair below 103.00 handle, towards testing a strong horizontal resistance, turned support, near 102.80-75 region.