USD/JPY hits fresh lows after disappointing NFP

USD/JPY dropped from near 1-month highs as the greenback weakened as the knee-jerk reaction to US nonfarm payrolls.

Data showed US economy added 156,000 new jobs in September, the smallest gain since May, and missing expectations of a 175,000 increase. Meanwhile, the unemployment rate unexpectedly rose to 5.0% from 4.9% the previous month.

USD/JPY extended the correction from Thursday’s highs, falling around 60 pips after the release and hit a low of 103.25. However, the pair quickly bounced back to around 103.60, where it trades at time of writing, 0.33% below its opening price.

USD/JPY levels to watch

In terms of technical levels, next resistances could be found at 104.30 (Sep 2 high), 105.00 (psychological level) and 105.56 (Jul 29 high). On the other hand, supports are seen at 103.00 (psychological level), 102.65 (Oct 5 low) and then 101.93 (10-day SMA).