EURUSD reverses the job losses. USDJPY remains higher

The EURUSD has reversed all the declines from the “stronger” US jobs data. The move lower started at 1.17858 and moved to a low of 1.17163. The rebound high reached up to 1.1789, before rotating back lower.

Looking at the hourly chart, the rotations, the price moved back above the swing area between 1.1753 to 1.17688 and the 100 hour MA (blue line), but is now back below the 100 hour MA.

Traders are getting whipped around and not liking it.

The USDJPY, however, is keeping most of the gains and the corrective move lower off the high did hold support.

Looking at the hourly chart below, the spike higher earlier rose above the 200 hour MA at 144.549 and back above the 50% at 145.062. The high price reached to 145.22.

The rotation lower did move back below the 50% level but has been able to hold support at the 200 hour MA at 144.549. The price is back up testing the 50% currently. Move above should be more bullish.

Although the jobs report was “stronger” in number, there is some ambiguity from the mix. Government jobs – local and state mainly – accounted for half of the gains jobs for the month. Goods producing jobs were negative. My guess is that Pres. Trump would’ve preferred having no government jobs and a tamer number so that he could continue his commentary toward Fed chair Powell for rate cuts. With the unemployment rate moving down to 4.1% and nonfarm payroll jobs adding over 140,000, stumping for rate cuts the head of potential inflation from tariffs, is a difficult task.

US yields remain higher with the two-year up 9.1 basis points to 3.8799%. The low yield this week was at 3.697%. The 10 year yield is up 4.1 basis points at 4.339%. It’s low for the week was at 4.187%.