USDJPY started the week @ 111.979 WM3 and moved to the downside, boosted by weak employment numbers. Price, however, did not reach its weekly pivot target of WM1, finding support @ WS1/110.8603, and the 200ema on the four-hour chart. A break of 110.506 & MPP to the downside will further strengthen the bearish momentum.
I should note that although NFP printed a dismal 20k vs 180k estimate, it was not all that bad. Unemployment fell to 3.8% from 4.0% last month and below the 3.9% estimate. Underemployment rate plunged to 7.3% from 8.1%, and earnings increased by 0.4% vs 0.3% estimate.
My hypothesis on the dollar is when coming to the latest NFP print is that this reading won’t worry the FED that much because it’s possible that this could be a once off thing. The only time could cause problems is if we get consecutive lower NFP prints for the months to come. If that happens then that will definitely cause some concern for the FED, and shed more light as to how many times the Fed hikes this year.

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