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Forex - USD/JPY down in U.S. session on jobs report

Published 07/06/2012, 02:07 PM
Updated 07/06/2012, 02:08 PM
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Investing.com - The dollar traded lower against the yen in U.S. trading on Friday after the U.S. government reported that June's jobs figures came in weaker than expected.

In U.S. trading on Friday, USD/JPY hit 79.67, down 0.31%, up from a session low of 79.50 and off a high of 80.02.

The pair was likely to find support at 79.50, the earlier low, and resistance at 80.10, the high from July 5.

In the U.S., the Bureau of Labor Statistics reported the economy added a net 80,000 nonfarm payrolls in June, below market forecasts for a gain of around 90,000.

April figures were revised to 68,000 from 77,000 nonfarm payrolls, while May's numbers were  revised to 77,000 from 69,000.

The news sent the dollar rising against most other higher-yielding currencies but falling against the yen, a safe-haven currency.

Japanese indicators fueled demand for the yen as well.

In Japan, the Leading Indicators Index, a forward-looking composite index based on 12 economic indicators, jumped to 95.9 in May from 95.6 in April.

The figure outpaced market expectations for a 95.3 reading.

The yen also rose against the greenback in wake of a European Central Bank decision to trim its benchmark interest rate 25 basis points to 0.75%.

A Bank of England decision to inject GBP50 billion into the economy via stimulus measures followed by interest rate cuts in China sent the yen climbing as well.

The yen was up against the pound and up against the euro, with GBP/JPY down 0.61% and trading at 123.32 and EUR/JPY down 1.23% and trading at 97.81.







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