Sep US Labor report came good for Dollar good for risk revising up August non-farm payroll figure to strongly to 142k from 96k adding 114k in September closer to the consensus which was referring to 118k driving down the unemployment rate below 8% to 7.8% which is the lowest since Jan 2009.

The data show that there can be a chance for taking risk and cheeriness of positive sign putting pressure on the gold price supporting the greenback versus the Japanese yen which was the biggest loser in the first moment with a clear upside direction with a sentiment could be encouraging for the single currency to have a place above 1.30 supported by restoring confidence wave of loading risks.

These data which are good for Obama's campaign show also that there was no crucial need for the Fed's recent easing action of pumping 40$ billion a month in MBS which can add upside momentum to the US economy and in the same time lower the expectations of having a far away interest rate hike can be in 2015 as what has been sent out of  the recent Fed's meeting last month and so, it was good for USD too.

God willing, USDJPY next resistance can be at 79.20 before meeting 80 psychological level which can be followed by meeting another resisting levels at 80.61, 81.76, 83.37 before 84.16 while getting back down can be met with supporting level at 78.26 which could hold today following BOJ decision of holding the interest rate at 0.1% and its purchasing assets plan at 80 trillion yen unchanged after last month 10 trillion yen adding despite the political pressure in Japan for pushing BOJ forward in fighting the deflation and spurring faster growth pace. 78.26 can be followed by 77.96 before another supporting level at 77.78 which its breaking can lead to 77.42 whereas it has formed its previous bottom to the current level after falling from 79.20 which is the next resistance as what has been mentioned in the beginning.

 

Kind Regards

FX Market Strategist

Walid Salah El Din

E-Mail: mail@fx-recommends.com

http://www.fx-recommends.com  

This report has been prepared by FX Recommends. For more, go to FX Recommends