6 Apr 2015
USD/JPY recovers, back above 119
FXStreet (Mumbai) - USD/JPY defends mild gains in Asia, continuing its gradual recovery following a slump below 119 handle on Friday after discouraging payrolls figures dragged the pair to fresh one-week lows.
USD/JPY capped by 100-DMA
Currently, the USD/JPY trades higher by 0.10% at 119.08 levels, having posted day’s high at 119.17 and day’s low at 118.83. The recovery in USD/JPY remained by 100-DMA located at 119.21 levels, however, the pair remains in green as the US dollar tries to fight its way back across the board following a major sell-off after the US non-farm payrolls data came out below estimates.
The US non-farm payrolls figure came out at 126,000, below market estimates of 245,000 and lower than last month's revised 264,000. The unemployment rate stayed at 5.5%, while average hourly earnings rose 0.3% on a monthly basis and rose 2.1% on a yearly basis.
However, the bounce-back in USD/JPY seems limited as 1-yr treasury yields remains near fresh eight week lows around 1.830% on downbeat US data. The weaker report might defer the Fed to raise rates at its September meeting pushed the yields lower.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.21 (100-DMA) levels and above which it could extend gains 119.42 (10-DMA) levels. To the downside immediate support might be located at 119 below that at 118.69 levels.
USD/JPY capped by 100-DMA
Currently, the USD/JPY trades higher by 0.10% at 119.08 levels, having posted day’s high at 119.17 and day’s low at 118.83. The recovery in USD/JPY remained by 100-DMA located at 119.21 levels, however, the pair remains in green as the US dollar tries to fight its way back across the board following a major sell-off after the US non-farm payrolls data came out below estimates.
The US non-farm payrolls figure came out at 126,000, below market estimates of 245,000 and lower than last month's revised 264,000. The unemployment rate stayed at 5.5%, while average hourly earnings rose 0.3% on a monthly basis and rose 2.1% on a yearly basis.
However, the bounce-back in USD/JPY seems limited as 1-yr treasury yields remains near fresh eight week lows around 1.830% on downbeat US data. The weaker report might defer the Fed to raise rates at its September meeting pushed the yields lower.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.21 (100-DMA) levels and above which it could extend gains 119.42 (10-DMA) levels. To the downside immediate support might be located at 119 below that at 118.69 levels.