- USD / JPY hits new highs but then loses steam.
- US employment data for February beat expectations.
The USD / JPY jumped to 108.63, the new high in eight months after February employment data surprised positively in the US. After a few minutes, the dollar began to lose ground to an advance in stocks and Wall Street futures, leading the USD / JPY to give up gains and approach 108.00.
The pair is trading at 108.18, the lowest since the European session, still above 108.00 and far from Thursday’s close. The pullback began after Treasury yields peaked before beginning a reversal process.
The 10-year yield climbed to 1.62%, the new high in a year before returning to 1.57%. It remains to be seen if this correction will continue in the next few hours or if it will quickly fall behind. Should yields rise again, USD / JPY could pick up the gains again.
The employment report showed an increase in nonfarm payrolls of 379,000 in February far exceeding expectations of 182,000. While the January figures were revised upward, those for December were further downward. The unemployment rate went from 6.3% to 6.2%.
Initially the dollar was positively impacted and peaked, but then reversed direction. The DXY is back below 91.80, having traded above 92.00.
Technical levels
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