Saturday, October 3, 2015

USD/JPY falls below 119.00 as bond yields tumble

FXStreet (Córdoba) - USD/JPY is breaking an important technical level as it trades below 119.00. The Japanese currency rose across the board after the release of the US employment report that triggered a decline in equities and a rally in bonds.

USD/JPY initially dropped to 118.95 and rebounded, rising back above 119.00; the bounce was short-lived and resumed the decline as the US 10-year bond yield plummeted below 2.0%. The pair printed a fresh daily low at 118.68.

It was trading at 118.85/90, a hundred pips below the level it closed yesterday but holding below a key support level. A consolidation at lower levels could mean the end of a trading range that has been limited price action since early September.

A bad NFP

The US Labor Department informed that 142,000 new jobs were created in September, below expectations of 203,000. August numbers were revised from 173,000 to 136,000 and July from 245,000 to 223,000. The unemployment rate stood at 5.1%

Labor market numbers pushed Federal Reserve rate hike odds sharply to the downside, weakening the US dollar and boosted particularly the yen, the euro and the Swiss Franc in the market.
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