- The dollar rises throughout the market after the data.
- The yen falls on all fronts affected by the rise in Treasury yields.
- USD/JPY rises strongly from lows in three and a half months.
The USD/JPY soared after the release of the US official November jobs report which showed figures above expectations. The pair climbed almost 200 pips from 134.10 to 135.95.
After a few minutes, the pair trades around 135.50/70, in a context of high volatility. The strong bounce only serves for the moment to erase the losses of Friday and only a part of those of Thursday.
Data better than expected
The dollar came with a marked bearish trend in the market before the employment data, affected by the expectation of a less aggressive Federal Reserve. The recently published data favored a rebound, which for the moment looks corrective.
Non-farm payrolls rose by 263,000 in November, although it is the lowest data since April 2021, it was above expectations and shows that the market is in good health. This leaves room for the Fed to continue with its plan to tighten interest rates to cope with high inflation.
After the data, the Wall Street futures fell significantly. and the treasury bond yields they jumped, sending the yen tumbling. The yield on the 10-year bond went from 3.50% to 3.64%, before moderating to 3.57%.
The market continues to digest what the data left, so volatile hours are expected ahead.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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