Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

USD/JPY Roars Back After Solid Nonfarm Payrolls Report

By MarketPulse (Kenny Fisher)CurrenciesDec 05, 2022 11:56PM ET
www.investing.com/analysis/usdjpy-roars-back-after-solid-nonfarm-payrolls-report-200633152
USD/JPY Roars Back After Solid Nonfarm Payrolls Report
By MarketPulse (Kenny Fisher)   |  Dec 05, 2022 11:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Japanese yen has been on an impressive streak but has dropped sharply on Monday. USD/JPY is trading at 135.83, up 1.13% on the day.

Nonfarm Payrolls Boosts U.S. Dollar

The US dollar is showing some signs of life, courtesy of Friday’s US employment report, which was stronger than expected. The economy created 263,000 jobs in November, slightly lower than the October reading of 284,000 but well above the consensus of 200,000. Wage growth also outperformed, as the reading of 5.1% y/y was up from 4.9% and beat the forecast of 4.6%. The labor market continues to show a surprising resiliency and the increase in wage growth will drive inflationary pressure.

It was less than two months ago that the ailing Japanese yen was below the 150 level and there was increasing talk of Tokyo implementing another currency intervention to save the currency. The yen has turned the tables, gaining a superb 7.4% in November and another 2% so far in December as it trades at its highest levels since mid-August.

At the same time, it’s important to note that the yen’s recent upswing is more a story of broad weakness on the part of the US dollar rather than newfound strength in the Japanese currency. The Bank of Japan has no plans to change its ultra-accommodative policy, which has capped rate yields and weighed heavily on the yen, which is still down by about 18% against the dollar this year. With the Fed signaling that rates could go higher than it previously anticipated, the US/Japan rate differential will continue to widen and make the yen less attractive to investors.

Japan releases Household Spending later today for October, with a consensus of 1.0%. The downturn is expected to continue, following a 2.3% gain in September and 5.1% a month earlier. This will be followed on Wednesday with GDP for Q3, with an estimate of -1.1%. The economy contracted by 1.2% in the second quarter, so another decline in growth would mean that technically the economy would be in recession. If these releases are weaker than expected, the US dollar could gain more ground.

USD/JPY Technical

USD/JPY Daily Chart
USD/JPY Daily Chart

  • USD/JPY is putting strong pressure on resistance at 135.96. Above, there is resistance at 1.3699
  • There is support at 1.3412 and 1.3333

Original Post

USD/JPY Roars Back After Solid Nonfarm Payrolls Report
 

Related Articles

Al Brooks
EUR/USD Reverses Lower By Al Brooks - Feb 03, 2023

The EUR/USD bears got follow-through yesterday in the form of a bear bar closing on its low. This morning is a follow-through after yesterday’s bear reversal bar, and the market...

USD/JPY Roars Back After Solid Nonfarm Payrolls Report

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email