USD/JPY consolidates near 2-week tops, just above mid-109.00s ahead of NFP

• USD/JPY remains well supported by the prevailing risk-on mood.
• A subdued USD demand seemed to cap gains ahead of NFP report.

The USD/JPY pair hovered above mid-109.00s through the Asian session on Friday and consolidated the recent strong gains to two-week tops.

Improving global risk sentiment amid optimism over the US-China phase-one trade deal and de-escalation of geopolitical tensions in the Middle East continued denting the Japanese yen's safe-haven status.

Bulls eye US jobs data for fresh impetus

The risk-on flow was further reinforced by some follow-through uptick in the US Treasury bond yields and remained supportive of the pair's upsurge of nearly 200 pips from three-month lows set earlier this week.

Meanwhile, a subdued US dollar demand failed to impress bulls or provide any additional boost to the major and eventually turned out to be one of the key factors capping any further gains for the major, at least for now.

Investors also seemed reluctant to place any aggressive bets heading into Friday's key event risk, the release of the closely watched US monthly jobs report, which further contributed to the pair's subdued trading action.

Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the recent multi-month swing high resistance near the 109.70 region, before traders start positioning for any further appreciating move.

Technical levels to watch