USD/JPY continues to move lower

Source: Dukascopy Bank SA


The Bureau of Labor Statistics has published the Non-farm Employment Change, Average Hourly Earnings and the Unemployment Rate. The data has been abysmal. The data reveals that the US economy is not doing well, as the Chairman of the Fed stated on Thursday. The economy is declining. A declining economy might need interest rate cuts.

Non-farm Employment Change was forecast to show 238,000 new jobs created. Actual numbers is just 175,000. Average Hourly Earnings were expected to show an increase of 0.3%. Wages have increased just 0.2%. The Unemployment Rate has not remained at 3.8%. It has moved back to 3.9%.

Meanwhile, the Bank of Japan is still active and uses various tools to strengthen the Yen. Namely, see the sharp sudden moves of the rate down that can not be observed on other pairs with the USD. Those are suspected to be BoJ interventions and policy comments that are moving the rate down. The BoJ appears to have started to push the pair down since it approached 160.00.

On May 3rd, the pair had declined to 152.00, before retracing upwards and testing the resistance zone at 152.75/153.00. A resumption of the decline is bound to eventually look for support in the major 150.00 mark, before further downside is possible.

On the other hand, a recovery of the Dollar against the Yen is set to face resistance at 153.50, 154.00, 154.50 and the descending hourly simple moving averages. Higher above, expect all round levels to act as resistance and as they are passed, as support.
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