USD/JPY rallies to levels near 110.00 fuelled by bright NFP data


  • USD/JPY breaks through multi-month highs to hit levels right below 110.00
  • The dollar rallies following an unexpected increase on May’s payrolls.
  • US employment data boosts hopes of a V-shaped recovery on the second half of the year.

The greenback has broken higher against the Japanese yen, following the unexpected increase on US Non-Farm Payrolls, to reach 2, 1/2 – month highs at 109.85. The pair is on track to a 2% advance this week, following a four-day rally from the mid-range of 107.00.

US dollar appreciates after upbeat US payrolls

The market has welcomed the unexpected increase on May’s non-farm payrolls data boosting demand for the US dollar. The Labor Department has reported an increase of 2.509 million jobs, against market expectations of an 8 million decline. Last month’s increase follows a record drop of 20.687 million in April.

Likewise, the unemployment rate has dropped to 13.3% in May from 14.7% in April. May’s employment report has boosted risk sentiment, confirming that the worst of the coronavirus-induced global downturn has been left behind and fanning hopes of a v-shaped recovery on the second half of the year.

 

USD/JPY testing resistance at the 100 and 200 weekly MAs

The daily and hourly charts show the pair moving into overbought territory after having rallied for four consecutive days, which suggests the possibility of a downward correction. The pair is now right at the cross point of the 100 and 200-week moving averages, around 10960/80. Above here,  next resistance lies at 110.20 (Jan 20 high) and then probably at 110.67 (21 May 2019 high).

On the downside, support levels are 109.30 (April 6 high), the 100-day SMA , at 108.35 and 108.40 (June 1 low).

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD challenges weekly highs is a sentiment-driven advance

The financial markets continue to focus on sentiment instead than on data, with equities leading the way. Upbeat earnings reports overshadow coronavirus-related concerns. EUR/USD nearing June monthly high at 1.1422.

EUR/USD News

GBP/USD pierces 1.2500 as investors return to the dollar

The Pound is the weakest across the FX board, and the most sensitive to spikes of dollar’s demand. May GDP at 1.8% indicates a slow and painful economic recovery in the UK.

GBP/USD News

Gold: Intraday bounce falters near 100-hour SMA

Gold staged a goodish intraday bounce from short-term descending channel support. The uptick lacked any follow-through, albeit the bias remains tilted in favour of bulls. A convincing break below the trend-channel will negate prospects for any further gains.

Gold News

Bitcoin is the King and wants to keep the throne

Today the market is turning red because of the threat posed to the Altcoin segment by the possibility of Bitcoin taking the path to victory in the war for dominance. Bitcoin has been losing market share since the beginning of May. Now, it shows intentions of stopping the bleeding.

Read more

WTI rebounds towards $40 mark ahead of API data

WTI (August futures on Nymex) is looking to regain the 40-level following a quick rebound from the daily lows reached just above the 39 mark.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures