USD/JPY up to fresh highs after nonfarm payrolls

USD/JPY advanced quickly to fresh daily highs after data showed US economy created more jobs than expected in July.

US nonfarm payrolls report showed a 255,000 job gain in July, versus 180,000 expected but down from June’s upwardly revised 292,000. The unemployment rate stood at 4.9% versus 4.8% expected.

The dollar benefited from data and rose across the board, although gains remained capped against the yen. USD/JPY peaked at 101.55 from 101.05 before the release, but lacked momentum to break above post-BoJ highs. At time of writing, USD/JPY is trading at 101.45, up 0.25% on the day.

USD/JPY technical levels

In terms of technical levels, next supports are seen at 100.67 (Aug 2 low), 100.53 (Jul 11 low) and 99.98 (Jul 8 low). On the other hand, resistances line up at 101.65 (Aug 4 high), 102.82 (Aug 2 high) and 103.48 (10-day SMA).