The USD/JPY pair recovered from the knee jerk drop as investors priced-in the drop in the unemployment rate and a solid wage data. Fed rate hike bets rise The two-year treasury yield, which mimics short-term interest rate expectations, strengthened at least three basis points, indicating a rise in the rate hike bets. The horribly weak NFP got overshadowed by the surprise drop in the unemployment rate to an eight-year low of 4.9%. The average weekly earnings also bettered estimated by coming-in at 0.5% m/m. As of now, the spot is trading around its hourly 50-MA at 117.36 and appears on track to end its four-day losing streak. USD/JPY Technical Levels A convincing break above the immediate resistance at 117.36 (hourly 50-MA) would open doors for 118.30 (23.6% of May 2015 high – Jan 2016 low). On the other hand, break below 116.47 (Jan 21 low) would expose a major support at 115.97 (Jan 20 low). For more information, read our latest forex news.