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Thomson Reuters
Oct 05 - 12:12 PM
USD/JPY - COMMENT-US Payrolls Report May Be Goldilocks For USD/JPY
First appeared on eFXplus on Oct 05 - 10:15 AM

USD/JPY rallied briefly toward intraday resistance at 114.10 after today's U.S.
jobs report demonstrated that overall employment remains robust
nLLA5LEEDB but not so frothy as to force the Fed into rapid tightening that would undermine financial markets and shorten the economic expansion. Though headline payrolls missed consensus forecasts -- as well as heightened expectations after Wednesday's unexpectedly strong ADP and ISM services -- upward revisions to previous months outweighed any disappointment.
Meanwhile, the jobless rate fell to a 49-year low of 3.7 percent. Hurricane Florence may have had a much bigger impact than expected, one that the data will work through over the coming months.
This week's U.S. data should allow USD/JPY to hold above key support in the 113.50s from Tuesday and Wednesday's lows, the daily tenkan and the 200-HMA at 113.53/55/57.
Only a break and close below 113.50 would signal the overbought uptrend will have to correct toward 112.50 before completing the rise to Fibo targets at 115.08/15/33.
The limited reactions in Treasury yields and U.S. stocks so far suggests USD/JPY dip-buying as a trade and for investment remains attractive.

Chart: Click here

Chart: Click here

Thomson Reuters IFR Markets


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