Investing.com - The dollar shot up against the yen on Friday after official data revealed that the U.S. economy picked up far more payrolls in November than markets were expecting.
In U.S. trading, USD/JPY was up 1.48% at 121.56, up from a session low of 119.71 and off a high of 121.69.
The pair was expected to test support at 117.22, the low from Nov. 27, and resistance at 121.69, the session high.
The Labor Department reported earlier that the U.S. economy added 321,000 jobs in November, well above expectations for a 225,000 reading. October's figure was revised up to 243,000 from a previously estimated 214,000, pointing to underlying strength in the labor market.
The U.S. unemployment rate remained unchanged at 5.8% last month, in line with expectations, and the numbers fueled expectations that the Federal Reserve will raise interest rates in 2015, possibly earlier than once anticipated.
A separate report showed that the U.S. trade deficit hit $43.40 billion in October, down from $43.60 billion in September, whose figure was revised from a previously estimated deficit of $43.00 billion. Analysts had expected the trade deficit to narrow to $41.20 billion in October.
Data also showed that U.S. factory orders fell 0.7% in October compared to expectations for a 0.2% slip. Factory orders in September were revised to a 0.5% decline from a previously estimated 0.6% fall.
The yen remained under pressure after Japanese media outlets reported on Thursday that Prime Minister Shinzo Abe's coalition government could retain its majority in the lower house of parliament in elections due to be held on December 14.
Separately, the yen was down against the euro and down against the pound, with EUR/JPY up 0.72% at 149.36, and GBP/JPY trading up 0.92% at 189.48.