• USD/JPY rose on Friday as dollar regained its footing after the U.S. non-farm payrolls report showed a slowing in hiring in December but an increase in wages, setting the economy up for further interest rate increases from the Federal Reserve this year.
   
• Non-farm payroll data showed that the United States added 156,000 jobs in December, less than expected, but a rebound in wages pointed to sustained labour market momentum.
   
• The dollar had slipped on Thursday following unimpressive U.S. employment data and a surge in the Chinese yuan as Beijing made moves to shake out large bets against its currency.
   
• Further downside is expected to be limited as the pair finds strong support at 115.72 should limit further decline and bring rebound towards higher levels in the short term.
   
• To the upside, the strong resistance can be seen at 116.96, a break above this level would take the pair towards next resistance level at 117.36.
   
• To the downside immediate support can be seen at 116.16, a break below this level will open the door towards next level at 115.72.
  
  Resistance Levels
  
  R1: 116.96 (50% Retracement Level)
  
  R2: 117.36 (38.2% Retracement Level)
  
  R3: 117.96 (23.6% Retracement Level)
  
  Support Levels
  
  S1: 116.16 (50% Retracement Level)
  
  S2: 115.72 (Session lows)
  
  S3: 115.00 (Daily lows)