The U.S Dollar rallied against the Japanese Yen during last weeks trading session bringing the pair to seven years fresh high 121.69. This was fueled by the ongoing recession in the Japanese economy. More-so, the dollar rallied against a basket of other major currencies on Friday after a particularly strong U.S. employment report prompted investors to bring forward expectations for a hike in U.S. interest rates.
The Labor Department reported that the U.S. economy added 321,000 jobs in November, far more than the 225,000 forecast by economists and the largest monthly increase in almost three years.
September’s figure was revised up to 243,000 from a previously reported 214,000 and the unemployment rate remained unchanged at a six-year low of 5.8%.
The unusually strong data saw investors bring forward expectations for the first hike in U.S. interest rates to mid-2015 from September 2015 before the report.
Weekly bias remains bullish as 21 and 55 EMA is crossed upward for more buying as the 4 hours, daily, weekly and monthly time-frame are synchronized for a continuation of the current strong uptrend. SSRC, MACD and RSI oscillators are also showing bullish momentum is intact in the pair. More rise to 124.130 resistance is expected in the long term picture.
Key economic reports to watch out for in the week ahead is the U.S Retail Sales and Prelim UoM Consumer Sentiment.