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USD/JPY jumps after NFP erasing daily losses, finds resistance below 136.00

  • US Dollar soars across the board after NFP.
  • Better-than-expected numbers trigger a decline in US Treasuries.
  • USD/JPY rises by almost 200 pips, finds resistance below 136.00.

The USD/JPY jumped from 134.10 to 135.95, after the release of the US official employment report that showed better-than-expected numbers. The pair then pulled back toward 135.00 after the initial reaction.

Jobs market still healthy, so is the Dollar?

Nonfarm Payrolls rose by 263K in November, the smallest since April 2021 but the number surpassed expectations and showed positive signs about the health of the labor market.

The US Dollar jumped after the report, while equity prices tumbles and US Treasury yields soared. The economic figures mean a go-ahead for the Federal Reserve to keep raising rates in order to control inflation. “This means that the labor market is hardly cooling off and remains stronger than the Fed would like”, said analysts at Commerzbank.

The combination of a stronger US Dollar and higher US yields sent the Japanese Yen to the downside across the board. It is still among the top performers of the day, but off highs.

The USD/JPY peaked at 135.95 and then pulled back. After the opening bell at Wall Street the pair is hovering at 135.10/30, as volatility remains elevated with market participants still digesting the NFP and its impact.

On a weekly basis, USD/JPY is headed toward the lowest close since mid-August, about to post the sixth weekly decline out of the last seven weeks.

Technical levels

USD/JPY

Overview
Today last price135.26
Today Daily Change-0.05
Today Daily Change %-0.04
Today daily open135.31
 
Trends
Daily SMA20140.78
Daily SMA50144.32
Daily SMA100141.18
Daily SMA200134.41
 
Levels
Previous Daily High138.15
Previous Daily Low135.21
Previous Weekly High142.25
Previous Weekly Low138.05
Previous Monthly High148.82
Previous Monthly Low137.5
Daily Fibonacci 38.2%136.33
Daily Fibonacci 61.8%137.03
Daily Pivot Point S1134.3
Daily Pivot Point S2133.29
Daily Pivot Point S3131.36
Daily Pivot Point R1137.24
Daily Pivot Point R2139.16
Daily Pivot Point R3140.17

Author

Matías Salord

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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