Shutterstock photo
Markets

Forex - USD/JPY falls as investors sell greenback for profits

Shutterstock photo

Shutterstock photo

Investing.com - The dollar fell against the yen on Monday after investors felt the greenback rose too far in wake of Friday's better-than-expected June jobs report, which sparked speculation the Federal Reserve will begin tapering stimulus measures later this year.

In U.S. trading on Monday, USD/JPY was trading at 100.88, down 0.29%, up from a session low of 100.80 and off a high of 101.54.

The pair was likely to find resistance at 101.54, the earlier high, and support at 99.26, Wednesday's low.

Official data on Friday revealed that the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.

May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.

The numbers sent the dollar surging by fueling sentiments monetary stimulus measures are on their way out by next year, especially the Fed's USD85 billion bond-buying program, which has weakened the dollar in the past to spur recovery.

By Monday, however, investors felt the greenback had surged enough and sold it for profits.

Meanwhile in Japan, the country's current account surplus widened to JPY540.7 billion in May, the second successive monthly increase since October 2010, which fueled hopes the economy is gaining steam.

The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.17% and trading at 150.93 and EUR/JPY trading up 0.07% at 129.91, mainly amid a session that saw increased demand for risk-on assets, which came at the safe-haven yen's expense.

Investors will keep an eye out for Chinese inflation data due out Tuesday, as any surprises could reflect in currency markets.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx