• October US employment report surpasses expectations.
  • US dollar weakens as Treasury yields decline despite employment data.
  • USD/JPY remains sideways, now testing the lower bottom.

The USD/JPY peaked at 114.02 following the US employment report and then turned to the downside. Recently it bottomed at 113.48, the lowest level in three days. It is hovering around 113.50, near the lowest bottom of the current range.

The US official employment report came in above expectations, with payroll rising by 531K above the 425K of markets consensus. The dollar initially rose but then weakened amid lower US yields. The economic numbers were not enough strong to change the perspectives of the November FOMC meeting. The views presented by Jerome Powell on Wednesday are still intact after today’s NFP.

The reversal in the bond market, with the US 10-year yield falling from 1.54% to 1.47%, the lowest in a month, pushed USD/JPY to the downside. The pair received support from market sentiment. The Dow Jones is up by .085% and the Nasdaq gains 0.60%.

Despite recent price action, USD/JPY continues to move sideways in a range between 113.40 and 114.20, now from more than two weeks. It is trading closer to the bottom. A break under 113.40 could trigger a bearish correction. Still, the dominant trend is bullish.

Technical levels

USD/JPY

Overview
Today last price 113.63
Today Daily Change -0.13
Today Daily Change % -0.11
Today daily open 113.76
 
Trends
Daily SMA20 113.78
Daily SMA50 111.71
Daily SMA100 110.93
Daily SMA200 109.62
 
Levels
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

 

 

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