- Nonfarm Payrolls in US increased by 145,000 in December.
- Annual wage inflation softened to 2.9% from 3.1%.
- US Dollar Index erases early gains to turn flat below 97.50.
The USD/JPY pair lost its traction and fell to 109.50 area after the disappointing labour market data from the US weighed on the greenback. As of writing, the pair was up 0.06% on the day at 109.57.
USD weakens modestly
The US Bureau of Labor Statistics on Friday reported that Nonfarm Payrolls in the US increased by 145,000 in December to miss analysts' estimate of 164,000. Additionally, the wage inflation, as measured by the Average Hourly Earnings, dropped to 2.9% on a yearly basis from 3.1% to further weigh on the greenback.
The US Dollar Index, which touched its highest level in two weeks at 97.58 earlier in the session, turned flat near 97.40 with the initial market reaction.
Despite the uninspiring NFP data, the S&P 500 futures are still up 0.2% on the day to suggest that Wall Street is likely to open in the positive territory. If US stocks climb to fresh record highs on Friday, the pair is unlikely to extend its losses. On a weekly basis, the pair is still up more than 150 pips.
Technical levels to watch for
|Today last price||109.58|
|Today Daily Change||0.08|
|Today Daily Change %||0.07|
|Today daily open||109.5|
|Previous Daily High||109.58|
|Previous Daily Low||109.01|
|Previous Weekly High||109.49|
|Previous Weekly Low||107.84|
|Previous Monthly High||109.8|
|Previous Monthly Low||108.43|
|Daily Fibonacci 38.2%||109.37|
|Daily Fibonacci 61.8%||109.23|
|Daily Pivot Point S1||109.15|
|Daily Pivot Point S2||108.79|
|Daily Pivot Point S3||108.58|
|Daily Pivot Point R1||109.72|
|Daily Pivot Point R2||109.94|
|Daily Pivot Point R3||110.29|
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.