- USD/JPY sold off on safe haven demand
- Risk sentiment soured on news that Trump tested positive for COVID-19.
- Friday’s mixed US monthly jobs report (NFP) offered no direction
The USD/JPY pulled back from a 9-day low, but remained under pressure around 105.25 after the US monthly jobs report.
USD/JPY sold off sharply on Friday breaking down a one-week-old trading range owing to a solid rise in demand for the safe-haven Japanese yen. Risk sentiment deteriorated after news that the US President Donald Trump and the first lady Melania Trump tested positive for COVID-19.
The news added to the uncertain climate sparking off a fresh wave of risk-aversion Investors looked to safe havens for refuge. Weak US Treasury bond yields also weighed on the USD/JPY.
US dollar moved between small gains and losses amid the deadlock in Congress over US fiscal stimulus measures. USD buyers were defensive following the NFP report which revealed that 661k new jobs were added in September, significantly weaker that 850K expected..
An upward revision to previous months data to 1.489 million from 1.371 million offset some disappointment, the unemployment rate declined to 7.9% from 8.4% previous and 8.2% expected. The mixed employment results us to the USD/JPY.
Can USD/JPY capitalize on the intraday bounce or will it hit resistance? USD/JPY is set for weekly losses.
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