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USD/JPY – Little Movement As Markets Await Non-Farm Payrolls

USD/JPY is showing little movement on Friday as the pair continues to trade close to the 105 line. In economic news, today’s sole Japanese release, Leading Indicators, met expectations. Over in the US, today’s highlight is the Non-Farm Employment Change. On Thursday, Unemployment Claims posted another strong reading and beat the estimate.

US Non-Farm Payrolls, one of the most important economic indicators, will be released later on Friday, and we could see some markets movement as a result. There had been concern that the indicator might sag towards the end of the year, but NFPs have looked strong. The past two readings have above the 200 thousand level and well above expectations. The markets are expecting another strong release, with the estimate standing at 196 thousand.    

It’s been an excellent start for US employment numbers in the new year. ADP Non-Farm Payrolls looked very sharp, as the key indicator climbed to 238 thousand, up from 215 thousand a month ago. This easily surpassed the estimate of 199 thousand. This was followed by another strong Unemployment Claims, which dipped to 330 thousand, beating the forecast. With another QE taper in January a strong possibility, every employment release will be under the market microscope and could impact on the currency markets.

 

USD/JPY for Friday, January 10, 2014

Forex Rate Graph 21/1/13

USD/JPY January 10 at 11:30 GMT

USD/JPY 104.98 H: 105.00 L: 104.78

 

USD/JPY Technical

S3 S2 S1 R1 R2 R3
102.53 103.30 104.17 105.70 106.85 107.73

 

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

USD/JPY ratio is pointing to gains in short positions in Friday trading. This is not reflected in what we are seeing from the pair, as the dollar has posted slight gains. Long positions have a majority in the USD/JPY ratio, indicating trader bias towards the dollar continuing to move higher.

The pair is hugging the 105 line in Friday trading. The US will release Non-Farm Payrolls later in the day, and if the reading is not in line with market expectations, we could see some volatility from USD/JPY.

 

USD/JPY Fundamentals

 

*Key releases are highlighted in bold

*All release times are GMT

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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