USD/JPY spikes higher after US labor market report

The greenback rose across the board on Friday and the USDJPY pair jumped circa 50 pips to trade slightly below the 109 threshold during the US session as investors piled into the US dollar following strong numbers from the US labor market.

According to the latest report, the US economy created 266,000 new jobs in November, much more than the 180,000 expected by economists. 

The change in total nonfarm payroll employment for September was revised up by 13,000 from 180,000 to 193,000, and the change for October was revised up by 28,000 from 128,000 to 156,000. With these revisions, employment gains in September and October combined were 41,000 more than previously reported.  

Wage growth remained strong and printed 3.1% on a yearly basis, while the unemployment rate improved modestly to 3.5%.

The major support appears to be near 108.35 and as long as the greenback hovers above it, the outlook seems bullish. The next level to watch is near the 108.00 barrier, where strong bids might be located as well.

On the upside, the first intraday resistance could be at around 109.00 and if bulls push the price above this resistance, further gains toward 109.50 could occur.