- USD/JPY gained strong positive traction on Friday and is supported by a combination of factors.
- The positive NFP report from the US provides a nice boost to the USD and acts as a tailwind for the pair.
- The positive risk tone weakens the safe-haven yen and provides additional momentum for the pair.
The pair USD/JPY received aggressive offers during the early hours of the North American session and jumped to the key psychological 135.00 level in reaction to the stellar US monthly employment data.
Indeed, the headline NFP data showed that the US economy added 253,000 new jobs in April, against the 179,000 expected, offsetting the downwardly revised reading of 165,000 jobs. Furthermore, the unemployment rate unexpectedly fell to 3.4% during the reported month from 3.5% in March, helping the US dollar (USD) regain strong positive traction and providing a nice boost to the USD/JPY pair.
Apart from this, a positive shift in global risk sentiment – as shown by a good recovery in equity markets – undermines the safe haven of the Japanese yen (JPY) and further contributes to the supply tone surrounding the USD pair. /JPY. That being said, the less aggressive stance of the Federal Reserve (Fed) stops USD bulls from making aggressive bets and keeps any further advance at bay, at least for now.
However, the USD/JPY pair, for now, appears to have broken a three-day losing streak and halted this week’s sharp pullback from the 137.75-137.80 region, or a two-month high. The pair, however, remains on track to post losses for the first time in the previous four weeks. Therefore, it is prudent to wait for strong follow-on buying before placing further bullish bets on the pair.
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.
