Nick Nasad
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USD/JPY: Weak NFP Undermines Dollar

The reaction to the disappointing NFP should probably judged in the context of the USD/JPY pair.

  • Yesterday we looked at the USD/JPY range that had set-up along with the clear levels of support and resistance, as well as levels to the topside and downside.
  • NFP day can have volatile reaction, and after an initial burst higher above 105.05 - the range resistance - the pair fell back down through the range and through support near 104.60.
  • If the pair holds below this level then it's likely we have further follow through to the downside - with the initial downside target of 103.80 - as today's NFP data could undermine the case somewhat for an aggressive tapering schedule for the FOMC.