USD/JPY jumps to fresh daily high, eyes 130.00 mark on mostly upbeat NFP report

USD/JPY rallies around 150 pips in reaction to the mostly upbeat US employment report details.
The US economy added 517K new jobs in January and the jobless rate dropped to 3.4%.
A weaker risk tone, hawkish BoJ expectations could lend support to the JPY and cap gains.

Haresh Menghani FXStreet

The USD/JPY pair catches some bids during the early North American session and spikes to a fresh daily top around the 129.80 region in reaction to the mostly upbeat US employment report details.

In fact, the headline NFP showed that the US economy added 517K jobs in January, surpassing even the most optimistic estimates. Adding to this, the unemployment rate unexpectedly edged down to 3.4% during the reported month from 3.5% in December. The data further points to the underlying strength in the US labor market, which should allow the Fed to stick to its hawkish stance. This, in turn, provides a strong boost to the US Dollar and is seen as a key factor behind the USD/JPY pair's sharp rally of around 150 pips in the last hour.

At the same time, a combination of factors lends some support to the Japanese Yen (JPY) and fails to assist spot prices to build on the momentum beyond the 200-hour SMA. Diminishing odds for an imminent pause o the Fed's rate-hiking cycle take a toll on the global risk sentiment, which is evident from a weaker tone around the equity markets. This, along with speculations that high inflation may invite a more hawkish stance from the Bank of Japan (BoJ) later this year, underpins the safe-haven JPY and keeps a lid on any further gains for the USD/JPY pair.

Hence, it will be prudent to wait for strong follow-through buying before positioning for an extension of the intraday positive move. Nevertheless, the USD/JPY pair, for now, seems to have erased its modest weekly losses and remains at the mercy of the USD price dynamics.

Technical levels to watch

USD/JPY

Overview
Today last price	128.52
Today Daily Change	-0.23
Today Daily Change %	-0.18
Today daily open	128.75

Trends
Daily SMA20	129.91
Daily SMA50	132.97
Daily SMA100	138.9
Daily SMA200	136.78

Levels
Previous Daily High	129.13
Previous Daily Low	128.08
Previous Weekly High	131.12
Previous Weekly Low	129.02
Previous Monthly High	134.78
Previous Monthly Low	127.22
Daily Fibonacci 38.2%	128.49
Daily Fibonacci 61.8%	128.73
Daily Pivot Point S1	128.18
Daily Pivot Point S2	127.61
Daily Pivot Point S3	127.13
Daily Pivot Point R1	129.23
Daily Pivot Point R2	129.71
Daily Pivot Point R3	130.28

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold rebounds from three-month low and retakes $4,000 on weak USD; focus remains on FOMC

Gold attracts some buyers, moving back above the $4,000 psychological mark during the Asian session amid a broadly weaker US Dollar. US President Donald Trump has ruled out immediate military action against Iran, triggering a modest pullback in crude oil prices. Furthermore, Federal Reserve officials have signaled no urgency to raise interest rates immediately.

Cardano's derivatives and on-chain data confirm bears in control

Cardano extends losses, trading below $0.202 after three consecutive weeks of more than 20% declines since early October. Selling pressure continues to build as weakening derivatives metrics, bearish on-chain signals and a deteriorating technical outlook point to further downside risks. Derivatives data shows a bearish bias for Cardano.

CFTC Report: WTI rally runs ahead of positioning

The week in one sentence: WTI prices surged while speculative longs were cut in the week to October 20, creating the clearest price/positioning divergence. Sterling and the Canadian Dollar led the constructive currency shift, while Yen longs also rebuilt. Speculators turned less constructive on the WTI, reducing their net exposure to around 89.3K contracts.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.