USD / JPY falls sharply after US NFP figures, trading around 109.70

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  • USD / JPY turned south in the early American session on Friday.
  • The yield on 10-year US Treasuries fell more than 1%.
  • Nonfarm payrolls in the US increased by 559,000 in May.

After spending the first half of the day in a relatively tight range above 110.00, the pair USD/JPY was under heavy downward pressure and was last seen shedding 0.52% on the day at 109.70.

Weak NFP report hurts USD

The USD sell-off following the US jobs report caused the USD / JPY to turn south. The US Bureau of Labor Statistics reported Friday that nonfarm payrolls in May increased by 559,000. This reading disappointed market expectations of 650,000 and weighed on the dollar. On a positive note, the unemployment rate fell to 5.8% from 6.1%, but investors paid little or no attention to this figure.

Commenting on the data, “declines in the dollar could be limited by waiting until the release of the Consumer Price Index next Thursday,” said FXStreet analyst Yohay Elam. “It comes after the Fed entered its blackout period, which means that the bank does not have the ability to dismiss high prices as transitory.”

Following this report, the US Dollar Index lost its traction and was last seen losing 0.4% on the day at 90.15. Later in the session, April factory orders data will be included in the US economic calendar.

Meanwhile, the 10-year US Treasury yield, which gained as much as 1% earlier in the day, is currently losing 1.4% to 1.6%, putting additional weight on the USD / JPY shoulders.

Technical levels

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