While the Cable and EUR/USD are holding strong, the USD/JPY is having the negative reaction one would expect from such negative U.S. unemployment data. Both the headline Unemployment Rate figure and Service Employment Change data points came in weaker than expected, with unemployment breaching the psychological 10% level (10.2%). As a result, investors are favoring the Yen over the Dollar as a safe haven, sending the USD/JPY below our previous 2nd tier uptrend line and the psychological 90 level. One will also notice a large pop in sell-side activity on the 1-hour, indicating bears are backing the move.

Today's development is certainly a negative turn of events for the USD/JPY, and the currency pair's bottom-end technicals may be tested in the near-future. That being said, technical supports do remain, including what is now our 2nd tier uptrend line along with our fresh 1st tier uptrend line and previous November lows. As for the topside, the USD/JPY still faces multiple downtrend lines and the psychological 90 level may begin serving as a technical barrier if the currency pair doesn't pop back above soon.

Meanwhile, investors should keep a close eye on the S&P futures along with activity in the EUR/USD and GBP/USD throughout the remainder of the session. All three have held up surprisingly well considering today's negative wave of unemployment data. However, if investors do opt to head for safety across the board as the session progress, the USD/JPY could experience further immediate-term downward pressure. On the other hand, continued strength in the USD/JPY's correlations could help the currency pair finish the week within reasonable distance of its psychological 90 level.

Present Price: 89.89

Resistances: 89.91, 90.07, 90.21, 90.35, 90.47, 90.58, 973

Supports: 89.77, 89.61, 89.44, 89.30, 89.15, 88.97, 88.82

Psychological: 90, November Lows