USD/JPY retreats from 1-week highs to 113.00 after NFP

• USD weakens after NFP.
• USD/JPY retreats to 113.00, still in positive territory for the day. 

The USD/JPY pair dropped after the release of the US jobs report. The pair fell from 1-week highs at 113.28 to the 113.00 area. 

According to the report, the US economy created 148K jobs during December, below the 190K expected. The unemployment rate remained unchanged as expected at 4.1%. Hourly earnings rose 0.3% in line with expectations. The headline came in below market consensus. The rest of the data offered no surprises. Despite the slowdown in NFP, numbers continue to signal a solid labor market. 

The data weakened the US dollar that fell across the board. The yen gained momentum against the greenback amid lower US yields but printed fresh lows versus other majors. 

USD/JPY fell to 113.00 and then bounced modestly to the upside. The pair lost bullish momentum but still remains in positive territory for the day, posting a gain of more than 30 pips. It continues to trade near the weekly high it reached before the report at 113.28. 

Technical levels 

To the upside, resistance levels might be seen at 113.25/30 (daily high), followed by 113.35/45 and 113.75 (Dec high). On the flip side, supports could lie at 113.00 (recent session low), 112.70 (daily low) and 112.55.