USD/JPY falls to test weekly lows around 113.50 despite upbeat US data

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.

Matías Salord FXStreet

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

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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