USDJPY trades higher initially, and then back lower after the US jobs report.

Technical Analysis

The nonfarm payroll came in better-than-expected. The unemployment rate was off low levels but still very low. Earnings were touch higher than expected with the year on year coming in as expected and lower than last month but still at 4.7% (but that is less the inflation rate).

The forex market saw the dollar move higher initially, but is now seen selling. And that also being seen in the USDJPY. Looking at the hourly chart, the high price stalled ahead of the downward sloping trendline. The price has since moved back below the 100 and 200 hour moving averages at 147.88 and 147.542 respectively, and looks toward a swing area target between 146.818 and 146.985.

Move below that swing area level and it opens the door for a further rotation to the downside.

Meanwhile, the US stock market is running to the upside:

  • Dow industrial average is up over 300 points
  • S&P index is up around 50 points
  • NASDAQ index is up 162 points

Looking at the EURUSD, sellers turned to buyers on the move back above the 50% at 0.98141 and key swing area (between 0.98056 and 0.9816). The price has now moved above its 100 hour moving average at 0.98464. The high price just reached 0.9870 on the run higher.

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