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Forex - USD/JPY drops on U.S. jobs data, Japan machinery orders

Published 07/08/2012, 08:39 PM
Updated 07/08/2012, 08:40 PM
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Investing.com - The dollar traded lower against the yen in Asian trading on Monday after the U.S. government reported that June's jobs figures came in weaker than expected while in Japan, machinery orders fell much more than expected in May.

In Asian trading on Monday, USD/JPY hit 79.51, down 0.21%, up from a session low of 79.48 and off a high of 79.55.

The pair was likely to find support at 79.43, the low from July 6, and resistance at 79.73, the high from July 6.

Japan on Monday reported core machinery orders fell 14.8% in May, far worse than market expectations for a decline of 2.4%.

The news sent investors stocking up on positions in the yen, a safe-haven currency.

The dollar, meanwhile, slide against the Japanese currency on the heels of weak U.S. jobs data.

On Friday, the U.S. 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 service sector in the U.S. also dipped in June, a separate report shows.

The Institute of Supply Management's non-manufacturing purchasing managers' index fell to 52.1 in June from 53.7 in May.

Markets were predicting a 53.0 reading.

The yen was up against the pound and up against the euro, with GBP/JPY down 0.22% and trading at 123.12 and EUR/JPY down 0.21% and trading at 97.66.









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