- USD/JPY was under pressure as safe haven flows increased.
- that the mood in the market soured on news that Trump tested positive for COVID-19.
- US monthly jobs report (NFP) released on Friday failed to provide fresh direction.
The USD/JPY picked up from a 9-day low, although remained in the red around 105.25 after the US non-farm payroll jobs report.
USD/JPY sold off sharply on the final day of last week, breaking out of a one-week-old trading range owing to a strengthening Japanese yen on safe haven flows. Risk aversion dominated after US President Trump and the first lady Melania Trump tested positive for COVID-19.
The news added to an already uncertain climate driving investors in search of safe haven shelter. Weaker US Treasury bond yields reinforced the risk off tone and added pressure on USD/JPY .
The US dollar fluctuated around the flatline amid the ongoing deadlock over additional US fiscal stimulus measures. Buyers remained defensive following the US jobs reports which revealed just 661K new jobs were added to the US economy in September, missing forecasts of 850K.
That said, an upward revision from August to 1.489 million from 1.371 million reported earlier offset the negativity. Furthermore, the unemployment rate fell more than expected to 7.9% from 8.4%. Analysts had pencilled in an 8.2% rate for unemployment. The mixed data offered no firm direction to USD/JPY.
Can USD/JPY push higher or will it run into fresh resistance? Either way USD//JPY is set to record a modest weekly loss.
