USD/JPY drops below 110.00 on broad USD weakness
|- USD/JPY dropped to a daily low of 109.64.
- US Dollar Index stays in the red near 92.00.
- Nonfarm Payrolls in US increased by only 235,000 in August.
After spending the majority of the day above 110.00, the USD/JPY pair came under renewed bearish pressure in the early American session and dropped to a daily low of 109.64. As of writing, the pair was posting small daily losses at 109.88.
DXY extends slide on dismal labor market data
The renewed USD weakness following the dismal US August jobs report forced USD/JPY to turn south on Friday. The US Bureau of Labor Statistics reported that Nonfarm Payrolls (NFP) increased by 235,000 in August. This reading fell short of the market expectation of 750,000 and caused the US Dollar Index (DXY) to drop below 92.00 for the first time since early August. Currently, the DXY is down 0.2% at 92.02.
Although the publication revealed that the Unemployment Rate declined to 5.2% from 5.4% and July's NFP got revised higher to 1.05 million from 943,000, the greenback seems to be having a difficult time finding demand.
Meanwhile, the 10-year US Treasury bond yield is rising more than 3% on the day, helping USD/JPY limit its losses for the time being. Later in the session, the ISM's Services PMI report for August will be looked upon for fresh impetus.
Technical levels to watch for
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