USDJPY runs higher after jobs report
The US jobs report showed a -20 million+ decline in jobs. The unemployment rate rose to 14.7% but the Labor Department has already said that it would have been 5% worse if the workers were classified correctly. A large number of workers also felt that their job would come back within 6 months.
The USDJPY has moved higher after the report. Technically, the pair moved above its 100 hour moving average. This week the price has moved above that moving average on 3 separate occasions (on Monday Tuesday and again on Thursday). Each of those moves above failed. Each also failed to get above the 200 hour moving average.
Today's move has been able to breach the 200 hour moving average at 106.605. We currently trade just above that level at 106.65. The high price reached 106.688 so far. The next target comes in at the 50% retracement of the move down from the April 30 high at 106.735 (see hourly chart above).
The buyers are more in control with the moves above the moving averages, but price action can be volatile. If the price can stay above the 100 hour moving average at 106.434, the buyers remain in control. PS that level was also the high of the swing lows going back to the end of April in the range from 106.354 to 106.440. As a result it is a key bullish/bearish bias level for me.
