22 Oct 2013
USD/JPY bounces at 97.85 and reaches fresh daily highs
FXstreet.com (San Francisco) - After an initial negative reaction following the weaker than expected non farm payrolls numbers, the USD/JPY bounced at intra-day low at 97.85 to recover all initial losses and to post fresh highs around 98.45.
Currently the pair is trading at 98.40, 0.23% positive on the day. The short term perspective is slightly bullish according to the FXstreet.com trend index in the 1-hour chart. Indicators such as MACD, CCI and Momentum are pointing to the north while the Stochastic is bearish.
USD/JPY levels to watch
On the downside, if USD/JPY breaks below 97.85, next supports are seen at 97.55 (Oct 18 low) and 97.35 (Oct 10 low), while on the upside resistances are seen at 98.45 (daily high) and 99.00 (psychological level/Oct 17 high).
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.
Currently the pair is trading at 98.40, 0.23% positive on the day. The short term perspective is slightly bullish according to the FXstreet.com trend index in the 1-hour chart. Indicators such as MACD, CCI and Momentum are pointing to the north while the Stochastic is bearish.
USD/JPY levels to watch
On the downside, if USD/JPY breaks below 97.85, next supports are seen at 97.55 (Oct 18 low) and 97.35 (Oct 10 low), while on the upside resistances are seen at 98.45 (daily high) and 99.00 (psychological level/Oct 17 high).
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.