USD/JPY surges towards three-month high
James Chen March 6, 2015 8:04 PM
<p>USD/JPY (daily chart shown below) surged on Friday towards a three-month high, approaching the 121.00 level, on the heels of a better-than-expected employment report released […]</p>
USD/JPY (daily chart shown below) surged on Friday towards a three-month high, approaching the 121.00 level, on the heels of a better-than-expected employment report released by the US Labor Department.
The US added 295,000 jobs in February vs. a consensus estimate of 235,000. Furthermore, the unemployment rate dipped to 5.5% vs. a 5.6% consensus expectation.
This positive report prompted a substantial rise in the US dollar against the major global currencies, along with a corresponding drop in gold.
For USD/JPY, US dollar strengthening pushes the currency pair even closer to December’s seven-year high of 121.83, which was just short of its 122.00 upside resistance target.
The currency pair continues to trade within a long-term bullish trend that extends back to late 2012 and accelerated in the second half of last year.
The overall trend and technical indications for USD/JPY remain strong, and the currency pair continues to target the 122.00 level to the upside, with a further upside target around 124.00.
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