- Yen gains momentum as Wall Street extends losses.
- US Dollar losing ground after a 3-day rally, weaker after NFP data.
USD/JPY printed a fresh daily low under 107.00. The pair has been moving to the downside since the release of the US employment report and accelerated during the last hours amid a decline in US stocks.
The pair tested earlier weekly highs near 107.40 but failed to break higher. After the release of the NFP the greenback lost strength and USD/JPY pulled back. It continued to move lower after the beginning of the US session and recently dropped to 106.93. As of writing was trading at 107.00, still looking weak on an intraday basis.
The US jobs report showed that the economy added 103K jobs in March, below consensus of 193K. Average hourly earnings came in line with expectations, with a gain of 2.7% from a year ago. Overall, the headline was negative but wages rose as expected. The numbers did not alter the current stance of the jobs market, neither Fed rate hike expectations. Now, the focus turns to Fed Chair Jerome Powell's speech.
The yen trimmed losses across the board amid a slide in equity prices and lower US bond yields. The DOW JONES was falling 1.50% (with the futures contract approaching overnight lows) and the NASDAQ 1.13%. Risk aversion boosted the demand for the yen.
USD/JPY Technical levels
A consolidation below 107.00 could signal more correction ahead after a 3-day rally. Support levels might lie at 106.80, 106.35/40 and 105.95. On the upside, resistance might lie at 107.25 (20-hour moving average), 107.45/50 (weekly high) and 107.75/80.
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.