• USD/JPY slides for the second day in a row, below 113.50.
  • The market sentiment is upbeat, on better than expected US Nonfarm Payrolls.
  • Lower US T-bond yields acted as a headwind for the greenback.
  • USD/JPY: A daily close beneath 113.50 exposes the 113.00 figures as the next support level.

USD/JPY extend its slump for two-straight days, down 0.32%, trading at 113.38 during the New York session at the time of writing. The market sentiment is upbeat, portrayed by US equity markets rising to all-time highs during the day amid a better than estimated US Nonfarm Payrolls report. Also, lower US Treasury yields, with the 10-year, which strongly correlates with the USD/JPY pair, are plunging eight basis points, down to 1.44%. 

US Nonfarm Payrolls rose by 534K, better than the expected

The Bureau of Labour Statistics (BLS) in the US reported that the US economy added in October 534K new jobs to the economy, better than the 425K foreseen by analysts. Furthermore, the Unemployment Rate dipped from 4.7% to 4.6%.

Moreover, last month’s numbers reported that payrolls are stil short, 4.2 million below pre-COVID-19 levels. Further, the Unemployment rates for Hispanic Americans fell, whereas the African American and the Asian rates were unchanged.

The USD/JPY pair initially reacted to the upside, reaching a daily high around 114.00, but retreated the move once market participants dissected the report. It seems that the report was ignored after three central banks throughout the week pushed backward the idea of higher rates, as expressed by the RBA, the Fed, and the Bank of England in its monetary policy statements.

That, in turn, spurred the sell-off in the global bond market, led by US Treasuries, dropping severely, benefitting the prospects of safe-haven assets, like the Japanese yen and the precious metals.

USD/JPY Price Forecast: Technical outlook

The USD/JPY is in consolidation within the 113.50-114.50 range. Furthermore, the 50 and the 100-simple moving averages (SMA’s) hover around 114.00, acting as a tailwind for price action in the last couple of days. At press time, the 113.50 level respected by USD/JPY traders has been broken, opening the door for further losses towards the 113.00 figure.

For USD bulls to resume the upward trend, they need to reclaim the 114.00 figure. In that outcome, the following resistance on the way north would be the downslope trendline that travels from October 20 high towards November 1 high, around 114.30. A breach of the latter would expose the 2021 high at 114.70.

On the flip side, a break below 113.00 could open the way for further losses. The first demand zone would be the September 30 high at 112.00.


Today last price 113.33
Today Daily Change -0.43
Today Daily Change % -0.38
Today daily open 113.76
Daily SMA20 113.78
Daily SMA50 111.71
Daily SMA100 110.93
Daily SMA200 109.62
Previous Daily High 114.28
Previous Daily Low 113.51
Previous Weekly High 114.31
Previous Weekly Low 113.26
Previous Monthly High 114.7
Previous Monthly Low 110.82
Daily Fibonacci 38.2% 113.8
Daily Fibonacci 61.8% 113.98
Daily Pivot Point S1 113.42
Daily Pivot Point S2 113.08
Daily Pivot Point S3 112.65
Daily Pivot Point R1 114.19
Daily Pivot Point R2 114.62
Daily Pivot Point R3 114.96



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

AUD/USD under pressure below 0.7100 amid China concerns, USD rebound

AUD/USD under pressure below 0.7100 amid China concerns, USD rebound

AUD/USD remains pressured below 0.7100 amid fresh US-Sino trade concerns, surging China's covid cases and softening Australian inflation expectations. Investors reassess the US inflation data and its implications on the next Fed rate hike move. 


EUR/USD corrects below 1.0300 as DXY strengthens ahead of US Michigan CSI

EUR/USD corrects below 1.0300 as DXY strengthens ahead of US Michigan CSI

EUR/USD has tumbled to near 1.2850 amid a significant recovery in the DXY. A lower US CPI print has trimmed the odds of hawkish guidance while rate hike odds are solid. This week, the US Michigan CSI data will be of utmost importance.


Gold slips below $1,790 as DXY extends recovery, Michigan CSI eyed

Gold slips below $1,790 as DXY extends recovery, Michigan CSI eyed

Gold price has dropped to near $1,785.00 after surrendering the critical support of $1,788.00 in the Asian session. The precious metal has entered into a healthy correction phase after printing a fresh monthly high at $1,807.96 on Wednesday.

Gold News

XRP price attempts a 15% rally on Ripple’s interest in buying Celsius' assets

XRP price attempts a 15% rally on Ripple’s interest in buying Celsius' assets

XRP price shows a willingness to move above a significant resistance level, which it has attempted to do so for the past three months and failed each time. While this attempt is like any other and could fail, especially if the momentum is lacking.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!