USD/JPY slumps on disappointing NFP

FXstreet.com (Córdoba) - The USD/JPY slumped and dipped below the 98.00 mark after data showed the US created fewer jobs than expected in September, weighing on the greenback.

NFP lower-than expected

US nonfarm payrolls printed a 148K gain versus 180K expected, while the unemployment rate edged down to 7.2% from 7.3% the previous month. Employment gains in August were revised up to 193K from 169K, but July's gain was trimmed to 89K from 104K to mark the smallest increase since mid-2012. USD/JPY lost nearly 50 pips and printed a low of 97.87 before finding support. The pair was last around 97.95, recording a 0.2% loss on the day.

USD/JPY levels to watch

On the downside, if USD/JPY breaks below 97.87, next supports are seen at 97.55 (Oct 18 low) and 97.35 (Oct 10 low), while on the upside resistances are seen at 98.40 (daily high) and 99.00 (psychological level/Oct 17 high).

US: Nonfarm payrolls at 148K in September

US NFP grew by 148K in September, following the August increase of 193K, according to data released today by the US Department of Labor. This result is considerrably below market consensus of 180K.
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US: Average Hourly Earnings up 0.1% in September

The US Average Hourly Earnings remained almost unchanget at +0.1% in September, following a 0.3% rise in August, the US Department of Labor reported today. Analysts expected a 0.2% increase. On an annual basis Average Hourly Earnings rose by 2.1%, after rising by 2.2%, as expected.
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