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.

Eren Sengezer FXStreet

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

USD/JPY

Overview
Today last price	109.82
Today Daily Change	-0.12
Today Daily Change %	-0.11
Today daily open	109.94

Trends
Daily SMA20	109.94
Daily SMA50	110.09
Daily SMA100	109.7
Daily SMA200	107.79

Levels
Previous Daily High	110.12
Previous Daily Low	109.92
Previous Weekly High	110.27
Previous Weekly Low	109.41
Previous Monthly High	110.8
Previous Monthly Low	108.72
Daily Fibonacci 38.2%	110
Daily Fibonacci 61.8%	110.04
Daily Pivot Point S1	109.87
Daily Pivot Point S2	109.79
Daily Pivot Point S3	109.66
Daily Pivot Point R1	110.07
Daily Pivot Point R2	110.2
Daily Pivot Point R3	110.28

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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