FXStreet (Córdoba) – USD/JPY fell sharply and erased completely intraday gains after the release of weaker-than-expected US nonfarm payrolls.
US nonfarm payrolls
US economy created 223,000 new jobs in June, missing expectations of 230,000 and below the 254,000 of May (downwardly revised from 280,000).
The unemployment rate edged lower to 5.3% from 5.5% the previous month. The rate is the lowest since April 2008, but reflects fewer people were looking for jobs. Meanwhile, average hourly earnings of private-sector workers was unchanged last month at $24.95.
Separated data showed US initial jobless claims increased by 10,000 to a seasonally adjusted 281,000 in the week ended June 27, above the 270,000 expected.
The dollar reacted negatively with USD/JPY dropping more than 70 pips over the last minutes. At time of writing, the pair is trading at 123.05, 10 pips below its opening price from 123.70 before data.
USD/JPY levels to watch
As for technical levels, immediate resistances are seen at 123.88 (Jun 26 closing price), 124.00 (psychological level) and 124.36 (Jun 24 high). On the flip side, supports could be found at 122.35 (Jul 1 low) and 122.00 (psychological level/50-day SMA).
(Market News Provided by FXstreet)