USDJPY Eyes 111.00 After Downbeat Nonfarm Payrolls

FXOpen

The US Dollar (USD) extended upside movement against the Japanese Yen (JPY) on Monday, increasing the price of USDJPY to more than 107.40 following the release of US nonfarm payrolls data last week. The technical bias remains bearish because of a Lower Low the recent downside move.

Technical Analysis

As of this writing, the pair is being traded near 107.52. A support may be noted around 107.00, the psychological number ahead of 106.43, the intraday low of Friday and then 105.54, the swing low of the last major downside move as demonstrated in the following daily chart.

USDJPY Eyes 111.00 After Downbeat Nonfarm Payrolls

On the upside, the pair is likely to face a hurdle near 108.44, a major horizontal resistance area ahead of 109.00 and 110.00, the psychological levels and then 111.00, another major horizontal resistance level. The technical bias will remain bearish as long as the 111.86 resistance area is intact.

Nonfarm Payrolls

The U.S. economy created just 160,000 jobs in April, lower than economist expectations, while the unemployment rate held steady at 5 percent. On the bright side, wages rose during the month, with average hourly earnings up 8 cents an hour, representing a 2.5 percent annualized gain. The average work week edged higher to 34.5 hours, according to the Bureau of Labor Statistics, which issues the monthly jobs report. Those counted as not in the labor force surged by 562,000 for the month to more than 94 million.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around 111.00 resistance area could be a good strategy in short to medium term.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Tesla (TSLA) Leads Declines in the Equity Market
Shares

Tesla (TSLA) Leads Declines in the Equity Market

Yesterday, President Trump announced that letters had been sent to the United States’ trading partners regarding the imposition of new tariffs — for instance, a 25% tariff on goods from Japan and South Korea. This marks a return to “trade diplomacy”

Australian Dollar Strengthens Following RBA Decision
Forex Analysis

Australian Dollar Strengthens Following RBA Decision

Today, the AUD/USD pair experienced a spike in volatility. According to ForexFactory, analysts had forecast that the Reserve Bank of Australia (RBA) would cut interest rates from 3.85% to 3.60%. However, the market was caught off guard

What Is the Evening Star Candlestick Pattern, and How Can You Use It in Trading?
Trader’s Tools

What Is the Evening Star Candlestick Pattern, and How Can You Use It in Trading?

Candlestick patterns offer traders a way to read price action and spot potential changes in momentum. One notable pattern is the evening star, a three-candle formation that signals the start of a possible downtrend. This article breaks down what the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.