USD/JPY soars to 102.85 on surprisingly strong US consumer confidence data

Adding to the bullish sentiment surrounding the US Dollar, a surprisingly strong US consumer confidence index lifted the USD/JPY pair to monthly high level and move within striking distance of reclaiming 103.00 handle. 

The Conference Board's consumer confidence index for the month of August unexpectedly rose to 101.1, marking its higher level since September 2015. The print was much better than 97.0 expected and 96.7 (revised lower from 97.3) recorded in July. 

Today's stronger-than-expected release supported the view of Fed raising interest-rates in the near-future and the US Dollar caught fresh bids across the board, lifting the USD/JPY major to 50-day SMA region. 

However, this week's key focus would remain on August non-farm payrolls data (NFP), slated for release on Friday, which would determine the Federal Reserve’s next policy move and has the potential to trigger a fresh bout of volatility in the FX market.

Technical levels to watch

On a sustained strength above 102.70-80 (50-day SMA region) seems to open room for further near-term appreciating move, initially towards 103.50-55 intermediate resistance and eventually towards its next major resistance near 103.95-104.00 area. 

Conversely, reversal from current resistance level now seems to find immediate support near 102.40 and is followed by support at 102.00 round figure mark. A subsequent break below 102.00 handle has the potential to drag the pair back towards 101.30-20 horizontal support.