COZforex: The dollar decline to more than 2 week lows against the yen on Friday after data showed that the US economy added far fewer than expected jobs in December.
USD/JPY dropped to lows of 103.95, the weakest level since December 23 and was last down 0.65% to 104.17. COZforex senior currency strategist Ian • Quigley said, USD/JPY is predicted to find support at 104.63, and a drop through could take it to the next support line of 104.35. Meanwhile, the pair is predicted to find its first resistance at 105.12, and a rise through could take it to the next resistance line of 105.34.
Japan’s Ministry of Finance reported that the nation’s foreign-exchange reserves stood at $1,266.8 billion in December, down from $1,275.4 billion registered in the previous month. A separate report showed that the coincident index in Japan edged up to a level of 110.5 in November, less than market expectations for a rise to 110.6, from previous month’s level of 110.4. Meanwhile, Japan’s leading economic index advanced more-than-expected to a reading of 110.8 in November, following a figure of 109.8 recorded in the preceding month.
The unemployment rate dropped to a 5 years low of 6.7% from 7% in November, but this was due in part to people dropping out of the labor force. The labor participation rate dropped to an almost 35-year low of 62.8%.
Inclement weather in December contributed to the slowdown in hiring, as the construction sector cut 16,000 jobs, the biggest decline in the industry in 20 months.
The unexpectedly weak data tempered expectations that the Federal Reserve would cut its stimulus program again this month. The Fed cited a stronger labor market in its decision to cut its asset purchase program by USD10 billion in December, reducing it to USD75 billion-a-month.
Elsewhere, the CFTC Commitments of Traders report for the week ending January 7 showed that the net short yen position of 129,000 contracts was the smallest since late November, down from 135,000 in the previous week.
(COZ forex UK)
USD/JPY dropped to lows of 103.95, the weakest level since December 23 and was last down 0.65% to 104.17. COZforex senior currency strategist Ian • Quigley said, USD/JPY is predicted to find support at 104.63, and a drop through could take it to the next support line of 104.35. Meanwhile, the pair is predicted to find its first resistance at 105.12, and a rise through could take it to the next resistance line of 105.34.
Japan’s Ministry of Finance reported that the nation’s foreign-exchange reserves stood at $1,266.8 billion in December, down from $1,275.4 billion registered in the previous month. A separate report showed that the coincident index in Japan edged up to a level of 110.5 in November, less than market expectations for a rise to 110.6, from previous month’s level of 110.4. Meanwhile, Japan’s leading economic index advanced more-than-expected to a reading of 110.8 in November, following a figure of 109.8 recorded in the preceding month.
The unemployment rate dropped to a 5 years low of 6.7% from 7% in November, but this was due in part to people dropping out of the labor force. The labor participation rate dropped to an almost 35-year low of 62.8%.
Inclement weather in December contributed to the slowdown in hiring, as the construction sector cut 16,000 jobs, the biggest decline in the industry in 20 months.
The unexpectedly weak data tempered expectations that the Federal Reserve would cut its stimulus program again this month. The Fed cited a stronger labor market in its decision to cut its asset purchase program by USD10 billion in December, reducing it to USD75 billion-a-month.
Elsewhere, the CFTC Commitments of Traders report for the week ending January 7 showed that the net short yen position of 129,000 contracts was the smallest since late November, down from 135,000 in the previous week.
(COZ forex UK)