USD / JPY falls from 114.00 amid falling global bond yields, led by US Treasuries.

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  • USD / JPY is down for the second day in a row, below 113.50.
  • Market sentiment is bullish, on better than expected US nonfarm payrolls.
  • The decline in US Treasury yields acted as a headwind for the USD.
  • USD / JPY: A daily close below 113.50 exposes the 113.00 figures as the next level of support.

The USD/JPY It extends its decline for the second day in a row, with a fall of 0.32%, and trading at 113.38 during the American session at the time of writing. Market sentiment is upbeat, portrayed by US stock markets rising to record highs for the day amid a better-than-expected US non-farm payroll report. Additionally, the decline in US Treasury yields, with 10-year yields strongly correlated to USD / JPY, are sinking eight basis points, down as low as 1.44%.

US Nonfarm Payrolls Increased by 534,000, Better Than Expected

The Bureau of Labor Statistics (BLS) in the United States reported that the US economy added 534,000 new jobs to the economy in October, better than the 425,000 expected by analysts. Furthermore, the unemployment rate fell from 4.7% to 4.6%.

Additionally, last month’s figures reported that payrolls are slim, 4.2 million below pre-COVID-19 levels. Additionally, unemployment rates for Hispanic Americans fell, while African American and Asian rates did not change.

The USD / JPY pair initially reacted higher, hitting a daily high around 114.00, but reversed the move once market participants dissected the report. It appears that the report was ignored after three central banks throughout the week delayed the idea of ​​higher rates, as expressed by the RBA, the Fed and the Bank of England in their monetary policy statements.

That, in turn, drove selling in the global bond market, led by US Treasuries, falling severely, benefiting the outlook for safe-haven assets such as the Japanese yen and precious metals.

USD / JPY Price Forecast: Technical Outlook

USD / JPY is consolidating within the 113.50-114.50 range. Additionally, the 50 and 100 simple moving averages (SMAs) hover around the 114.00 level, acting as a tailwind for price action in recent days. At the time of writing, the respected 113.50 level has been broken, opening the door for further losses towards 113.00.

For the bulls to resume the uptrend, they need to regain the 114.00 level. In that result, the next resistance on the way north would be the descending trend line that travels from October 20 to the November 1 high, around 114.30. A breach of the latter would expose the 2021 high at 114.70.

On the other hand, a break below 113.00 could open the way for more losses. The first demand zone would be the September 30 high at 112.00.

Technical levels / Support and resistance levels

Today last price 113.33
Today’s Daily Change -0.43
Today daily change% -0.38
Today they open every day 113.76
Daily SMA20 113.78
SMA50 daily 111.71
SMA100 daily 110.93
SMA200 daily 109.62
Previous Daily High 114.28
Previous Daily Low 113.51
Previous weekly high 114.31
Previous Weekly Low 113.26
Previous monthly maximum 114.7
Previous Monthly Low 110.82
Daily Fibonacci 38.2% 113.8
Daily Fibonacci 61.8% 113.98
Daily Pivot Point S1 113.42
S2 daily pivot point 113.08
S3 Daily Pivot Point 112.65
R1 daily pivot point 114.19
Daily pivot point R2 114.62
R3 daily pivot point 114.96


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