USD/JPY Surges Over 1% Following US Nonfarm Payrolls Report
As the US Bureau of Labor Statistics (BLS) unveiled the addition of 254K jobs to the workforce, the USD/JPY experienced a significant rally within the Ichimoku cloud (Kumo). This surge was fueled by the positive impact on US Treasury yields, which closely correlate with the pair, pushing the exchange rate to its current level of 148.73, marking a gain of over 1%.
Technical Outlook for USD/JPY Price
- Bulls are currently in control, aiming for a breakthrough above 149.39 and the key level of 150.00.
- The Relative Strength Index (RSI) indicates a bullish trend, signaling further upside potential for the USD/JPY pair.
- If the price surpasses 150.00, the next resistance levels to watch out for are the 200-day moving average (DMA) at 151.06 and the 100-DMA at 151.94.
Support Levels for USD/JPY
The first support level for USD/JPY is at 148.00. If this level is breached, the subsequent support zones include the Senkou Span B at 147.78 and the bottom of the Ichimoku Cloud at 146.90-147.00.
USD/JPY Price Action – Daily Chart
Japanese Yen PRICE Today
The table below illustrates the percentage change of the Japanese Yen (JPY) against major currencies on the current day. Notably, the Japanese Yen exhibited strength against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.52% | -0.02% | 1.22% | 0.15% | 0.64% | 0.85% | 0.72% |
The heat map showcases the percentage changes of major currencies against each other, providing insights into the currency market dynamics.
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**Analysis:**
The surge in the USD/JPY pair following the US Nonfarm Payrolls report indicates a positive sentiment towards the US economy. The addition of 254K jobs boosted investor confidence, leading to a rally in the pair. This movement also reflected in the rise of US Treasury yields, highlighting the close relationship between economic indicators and currency performance.
From a technical perspective, the bullish trend in USD/JPY suggests potential for further upside, with key resistance levels at 149.39 and 150.00. On the downside, support levels at 148.00, 147.78, and 146.90-147.00 provide a cushion against potential retracements.
For investors and traders, understanding the interplay between economic data, currency movements, and technical analysis is crucial for making informed decisions in the financial markets. The USD/JPY rally underscores the impact of fundamental factors on currency valuations, offering opportunities for strategic trading and investment strategies.