Walid Salah El Din
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The US Blue chips could come back to the green territory to overcome the depression following the dovish release of May US Labor report which has shown adding only 138k of jobs out of the farming sector, while the median forecast was pointing to increasing by 185k.
But May labor report has shown again lower unemployment rate to reach only 4.3% to be at its lowest level in the last 16 years.
The report has shown average earning per hour rising yearly by 2.5% in May as the same as April, while the consensus was referring to increasing by 2.6% showing that there is no serious need to contain the wages inflationary pressure.
UST 10YR yield lost 4 points by falling to 2.17% following this shocking release which came after yesterday May ADP report which has shown adding 253k, while the market was waiting for 185k to prepare the market for strong labor data to be released today.
The gold is still keeping its gains following this release to be traded until now close to $1275 per ounce.
The greenback has been undermined across the broad because of this release which lowered the prospects of having another interest rate hiking when the FOMC to meet later on 13th and 14th this month.
USDJPY has dived to be traded now near 110 losing about 100 pips, despite the rebound of the risk appetite which has been boosted by lower probability of raising rates in US.
USDJPY is now well below its daily SMA200, after falling below its daily SMA50, with continued existence below its daily SMA100
USDJPY is now in its 14th day of being below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading 112.23 today, after forming a peak at 114.36 has been followed by a lower high at 112.12.
USDJPY daily RSI-14 is referring now to existence inside its neutral territory reading 41.513.
USDJPY daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line inside its neutral region at 30.682 above its signal line which is also in the neutral region at 27.188
Important levels: Daily SMA50 @ 111.19, Daily SMA100 @ 112.26 and Daily SMA200 @ 110.77
S&R:
S3: 110.23
S2: 109.58
S3: 108.12
R1: 112.12
R2: 114.36
R3: 115.49
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