The bulls took a breather after Tuesday’s more than 200 pips rally and now consolidate the upside, as the focus now turns towards the US jobs report due later today. USD/JPY trades above major DMAs The dollar-yen pair fails to benefit from the extended risk-on rally in the Asian equities and tries hard to keep 114 handle. The yen bulls fight back lost ground somewhat following the latest comments from BOJ Governor Kuroda. The central bank Chief sounded optimistic on the inflation outlook, noting that he expects core CPI to reach 2% around H1 of FY 2017. Meanwhile, the Japanese benchmark, the Nikkei is rallying +3.50%, Australia’s ASX 200 jumps +1.70%, while the Shanghai Composite index wiped-out gains and trades muted above 2,700. The recent bullish run in the USD/JPY pair was triggered by the stronger than expected US PMI indices from ISM. The ISM numbers came in better than expected booking 49.5 in February, up from 48.2 seen in January. In the day ahead, focus now remains on the US ADP employment change numbers and EIA crude reserves report for fresh direction on the major. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 114.21/33 (March 1 & Feb 18 High). A break above the last, the major could test 114.70/72 (daily R1/ Feb 15 High). While to the downside, the immediate support is seen at 113.66/54 (5-DMA/ 1h 20-SMA) and below that at 113.13/01 (1h 100 & 50-SMA). For more information, read our latest forex news.