USD/JPY Climbs On Better Than Expected US Non-Farm Payrolls

12/08/2014 9:00 am EST

Focus: FOREX

Tyler Amend, of DailyFX.com, discusses how the US dollar surged yet again on Friday against the Japanese yen when US non-farm payrolls beat analyst estimates and how falling global energy prices also provided little support for the yen against the dollar’s bullish onslaught.

US non-farm payrolls beat analyst estimates of 230K with a headline reading of 321K. The prior reading of 214K was revised higher to 243K as the damage of unseasonally-inclement weather in October and November was assessed. The private services sector had the largest increase in employment, which is inline with US ISM non-manufacturing data released Wednesday that stated the US services industry is currently performing at near record highs. As the United States retail industry prepares for the busy holiday season, market participants can expect a large increase in part-time temporary employment. This usually creates inflated jobs numbers for November and December and will largely consolidate in January after the holiday rush is over.

US Data That Was Responsible for US Dollar Price Action:

  • USD Change in Nonfarm Payrolls (NOV): 321K versus 230K expected, from 214K (revised to 243K).
  • USD Change in Private Payrolls (NOV): 314K versus 225K expected, from 209K (revised to 236K).
  • USD Unemployment Rate (NOV): 5.8% versus 5.8% expected, from 5.8%.
  • USD Underemployment Rate (NOV): 11.4% actual from 11.5%.
  • USD Trade Balance (OCT): -$43.4B versus -$41.2B expected, from -$43.0B (revised to -$43.6B).

USD/JPY 1-Minute Chart: December 5, 2014 Intraday

chart
Charts Created using Marketscope—prepared by Tyler Amend
Click to Enlarge

USD/JPY charged to a high of 121.389 as dollar strength surged on strong non-farm payrolls data out of the United States at 13:30 GMT. Current economic struggles in Japan coupled with falling global energy prices have provided little support for the yen against the dollar’s bullish onslaught. The pair has since moved sideways and is currently trading at 121.211 at the time of this report.

By Tyler Amend, Research Analyst, DailyFX.com

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