USD/JPY falls to test daily lows near 135.80 after NFP
10.03.2023, 13:43

USD/JPY falls to test daily lows near 135.80 after NFP

  • US economy adds 311,000 jobs in February; unemployment rate rises to 3.6%.
  • US Dollar drops across the board, US yields hit fresh lows.
  • USD/JPY falls below 136.00, flat for the week.

The USD/JPY dropped to levels sub 136.00 following the release of the US employment report. The US Dollar weakened across the board while US yields hit fresh daily lows.

The US Bureau of Labor Statistics (BLS) revealed on Friday that Nonfarm Payrolls rose by 311,000 in February, above the market expectation of 205,000. January’s numbers were marginally revised from 517,000 to 504,000.

The Labor Force Participation Rate improved modestly to 62.5% from 62.4% in January and the Unemployment Rate rose to 3.6%. Average Hourly Earnings increased 4.6% from a year ago.

The US Dollar dropped to fresh lows across the board while US stock index futures turned positive. Markets are digesting the job’s report. The Yen benefit amid a decline in US Yields. The 10-year yield fell to 3.76% and the 2-year hit level under 4.70%.

The USD/JPY dropped almost a hundred pips after NFP. It was trading around 136.70 and bottomed so far at 135.83, slightly above the Asian session low.

The daily lows area in USD/JPY is being challenged at the moment, and a break lower could trigger an acceleration. On the upside, a recovery above 137.00 could strengthen the US Dollar, exposing weekly highs near 138.00.

Technical levels

 

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