The Japanese yen is in negative territory on Friday after rising 0.89% a day earlier. In the European session, USD/JPY is trading at 152.82 at the time of writing, up 0.52% on the day.
Markets brace for super-soft Nonfarm Payrolls
The US releases the October employment report later today and the markets are bracing for a soft nonfarm payroll report of just 113 thousand. This isn’t due to the US economy crashing into a wall, but rather one-time events which likely took a chunk out of job growth this month – destructive hurricanes and the Boeing strike. If the market prediction is accurate, it would be the lowest nonfarm payrolls since December 2020.
Will the markets look beyond the jobs number? If so, a sharp nonfarm payrolls report shouldn’t trigger any panic. The unemployment rate is expected to remain unchanged at 4.1% and wage growth is projected to rise 0.3% m/m and 4% y/y, little changed from September.
The US will also release the ISM Manufacturing PMI later today. The manufacturing sector has been in the doldrums, posting only one month of growth in the past two years. The market estimate for November stands at 47.6, slightly better than the 47.2 reading in October.
In Japan, the drama continues as Prime Minister Ishiba fights for his political life. Japan’s parliament will convene on Nov. 11 to vote for the prime minister. Ishiba has been in power for only a month and his snap general election backfired, as the ruling Liberal Democratic Party failed to win a majority. The political instability has sent the yen reeling, as the currency plunged 5.8% against the US dollar in October.
USD/JPY technical
-
USD/JPY has pushed past resistance at 152.49. The next resistance is 153.14.
-
151.39 and 150.74 are the next support levels.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.