- The US dollar strengthens after a better-than-expected NFP.
- USD/JPY trims weekly losses with latest rally.
The USD/JPY jumped from 114.90 to 115.38 after the release of the US employment report which showed better than expected numbers. The pair reached the highest level since Monday and remains above 115.00, with the bullish momentum intact.
The January employment report showed figures mostly above expectations, which pushed the dollar higher in the market. Nonfarm payrolls increased by 467,000, well above 150,000. In turn, the December figures were revised upwards from 119,000 to 510,000.
“The Omicron wave has depressed economic activity, and this was bound to translate into weak hiring. He hasn’t. 467,000 jobs created and massive upward revisions suggest a fundamentally very strong economy. With companies desperate to hire and the biggest problem being a lack of adequate staff, wages are rising sharply and the Fed will respond,” ING analysts say.
The figures triggered a broad-based rally in the US dollar and a sharp rise in US yields that weakened the Japanese yen. The US 10-year yield rose to 1.91%, the highest level since January 2020, and the 30-year yield hit 2.20%.
Post-NFP rally put USD/JPY on track for second straight daily gain. Next resistance could be seen at 115.45, before last week’s highs at 115.65/70. Now the 115.00 zone has become the immediate support, followed by 114.78.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
