USD/JPY jumps to fresh tops post-jobs report

The USD/JPY pair jumped to fresh session tops and might now be looking to break through the 113.20-30 supply zone, despite weaker headline NFP print. 

The latest headline NFP showed that the total employment decreased by 33K in September, down from 156K in August but still better-than consensus estimates pointing to addition of 90K jobs. 

   •  US: Total nonfarm payroll employment decreased by 33,000 in September

September’s reading market first negative NFP print since 2010 but seems to have been largely negated by an unexpected drop in the unemployment rate, coming-in at 4.2% and stronger average hourly earnings growth, at 0.5% m-o-m as against a tepid 0.1% growth in August and 0.3% expected. 

Against the backdrop of disruptions caused by Hurricanes Harvey and Irma, market seems to have largely ignored the headline numbers and taking cues from other elements of the report, which provided a minor boost to the already bullish US Dollar.

It, however, remains to be seen if the pair is able to break through the mentioned hurdle or once again fails to sustain its up-move beyond the 113.00 handle. 

With the key event risk out of the way, traders now look forward to speeches by influential FOMC members - Boston Fed President Eric Rosengren, New York Fed President William Dudley and Dallas Fed President Robert Kaplan, for some fresh impetus.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes, "strong data could yield an end of the day close above 113.00. Such a move would open doors for a rally to 115.00 levels.”