USD/JPY retreats to 109.50 area on disappointing NFP report

  • 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
Daily SMA20 109.12
Daily SMA50 108.97
Daily SMA100 108.3
Daily SMA200 108.61
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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD stabilizes amid upbeat IFO data, coronavirus concerns

EUR/USD is trading below 1.0850 as the German IFO Business Climate beat with 96.1. Coronavirus headlines are weighing heavily on the market. The US dollar remains bid despite falling US yields. 


GBP/USD dips below 1.29 on USD strength

GBP/USD has dipped below 1.29 as the dollar gains ground amid coronavirus headlines. The EU and the UK prepare for formal post-Brexit due to talks kicking off next week. 


Crypto market consolidates prices while crushing traders' emotions

Top 3 prices remain in range and contradict indicators pointing south. Mild "fear" sentiment is inconsistent with prices in the upper range of the upward movement. XRP may be the surprise of the week and bounce upwards for technical reasons.

Read more

Gold hits fresh multi-year tops, eyeing $1700 mark

Gold continues scaling higher amid a fresh wave of the global risk-aversion trade. Heightened fears about the economic impact of the deadly coronavirus rattled investors. Absent relevant economic data is unlikely to hinder the ongoing strong move up.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info