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Forex - USD/JPY steady close to highs after U.S. jobs data

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Investing.com - The dollar was steady close to multi-year highs against the yen on Monday after data on Friday showed that the U.S. economy added significantly more jobs than forecast last month.

USD/JPY hit 96.25 during late Asian trade, the session high; the pair subsequently consolidated at 96.05, edging up 0.02%.

The pair was likely to find support at 94.77, Friday's low and near-term resistance at 96.60, Friday's high and a three-and-a-half-year high.

The U.S. economy added 236,000 jobs last month official data on Friday showed, well above expectations for an increase of 160,000. The unemployment rate ticked down to 7.7%, the lowest level since December 2008, from 7.9% in January.

The robust data added to speculation over an earlier-than-expected end to the Federal Reserve's easing program, bolstering demand for the dollar.

The yen remained under pressure as expectations for more aggressive easing steps by the Bank of Japan remained intact.

Earlier Monday, incoming BoJ Governor Haruhiko Kuroda said he would do "whatever is needed" to beat deflation and achieve the 2.0% inflation target adopted by the central bank in January.

Elsewhere, the yen was slightly lower against the euro, with EUR/JPY rising 0.15% to 125.00.

Also Monday, official data showed that Japanese core machinery orders dropped 13.1% in January, far more than the 2.0% decline forecast by economists and the first decline in four months.

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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.

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