Usdjpy Moves Lower Post Nfp Release

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Usdjpy Moves Lower Post Nfp Release

Usd/Jpy Under 145.00 Post-Nfp Release

After the highly anticipated NFP report, the USD/JPY touched the 146.00 level. The overall jobs report was good, which raised the fears that the Fed has little reason to even think about rate cuts. As a result, the USD/JPY moved back lower as the market players adjusted to a new reality.

In the past, a good NFP report often led to a favourable greenback. But now, the focus has shifted towards the NFP report and its relation to the supposed rate cuts. Any data release that hints at a lower interest rate sends the USD more bass, even if it is positive.

60% Chance Of Rate Cuts By Fed

The bigger picture is that the labour market is still pretty strong despite all of the rate hikes & and other measures by the Fed. The chances of early rate cuts are consistently low, with only a 60% chance of rate cuts during March. The odds were near 90% a little earlier, highlighting a net change of -30%.

In the next week, the USD/JPY will be impacted by Japan's CPI and the inflation numbers. Both policies will provide insights into how the BOJ will handle its current monetary policy.

To conclude the USD/JPY's price action on Friday, the pair moved to 146.00 only to move lower under the 145.00 handle again. For now, the pair can be seen trading above 144.50 with eyes set on the 145.00 and the 145.20 levels.

The first few days of 2024 show a trend of consistent JPY selling as the USD/JPY has already gained 3% from its December price of around 140.25.

The Greenback/Yen pair closed three days in green this week and has already crossed the 200 SMA. Furthermore, the technical readings on the D1 show that USD/JPY is now recovering from its earlier losses.

Compared with November's high, the USD/JPY has lost 5%, which shows that the JPY still has some cards under its belt. According to one analyst, the short-term hurdle for the USD buyers is 147.00, where the 50 SMA is located.

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