Investing.com - The U.S. dollar retreated from seven year peaks against the yen on Friday after the latest U.S. employment report came in lower than expected, prompting investors to take profits on the greenback.
The Labor Department reported that the U.S. economy added 214,000 jobs in October, missing expectations for jobs growth of 231,000.
September’s figure was revised up to 256,000 from a previously reported 248,000 and August’s figure was also revised up to 203,000 from 180,000 pointing to underlying strength in the labor market.
The U.S. unemployment rate ticked down to a fresh six-year low of 5.8% from 5.9% in September.
The data prompted investors to sell the dollar to lock in gains following its recent rally but the data did little to alter expectations that the Federal Reserve will raise interest rates ahead of its other major peers.
USD/JPY was down 0.56% to 114.58 in late trade on Friday, pulling back from the seven year highs of 115.58 struck earlier in the session.
The pair ended the week with gains of 1.56% as the Bank of Japan’s surprise stimulus move on October 31 continued to weigh on the yen.
From next year the BoJ will increase its balance sheet by 15% of gross domestic product per year and will extend the average duration of its bond purchases from seven years to 10 years.
The move came after data showed that the country’s economy contracted by an annualized 7.1% in the second quarter following a sales tax hike in April. The contraction added to doubts over whether the BoJ’s 2% inflation target can be reached in the fiscal year starting next April.
Elsewhere, the euro was slightly higher against the yen late Friday, with EUR/JPY edging up 0.12% to 142.73.
In the week ahead, investors will be looking ahead to Friday’s retail sales figures from the U.S., while Japan is to release data on machinery orders and the current account.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday, as there are no significant events on this day.
Tuesday, November 11
Japan is to publish data on the current account.
Wednesday, November 12
Japan is to publish data on tertiary industry activity.
Thursday, November 13
Japan is to release data on core machinery orders.
The U.S. is to publish the weekly report on initial jobless claims.
Friday, November 14
The U.S. is to round up the week with data on retail sales and import prices as well as preliminary data on consumer sentiment from the University of Michigan.