US Nonfarm Payrolls disappointed on Friday, as the key employment indicator slipped to 214 thousand, well short of the estimate of 235 thousand. On a brighter note, the unemployment rate slipped to 5.8%, its lowest level in six years. On Thursday, Unemployment Claims fell to 278 thousand. This was better than the estimate of 285 thousand and marked a three-week low.
On Thursday, the Bank of Japan released the minutes of its previous policy meeting, which took place earlier in October. That event sent the yen tumbling and the currency has yet to recover. At the meeting, the BoJ surprised the markets by increasing monetary stimulus from JPY 60-70 trillion to 80 trillion per year.
USD/JY lost ground in the Asian session but has recovered in European trade.
114.65 is a weak resistance line. 115.75 is stronger.
113.68 is providing support. 112.94 is next.
Current range: 113.68 to 114.65
USD/JPY is pointing to gains in long positions on Monday. This is not consistent with the lack of movement shown by the pair. The ratio currently has a majority of long positions, indicative of trader bias towards USD/JPY breaking out of range and moving upwards.