USD/JPY surges towards three-month high

<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.

USD/JPY daily chart

 

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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