The dollar fell against the yen on Friday, after a report showing that the U.S. economy added slightly fewer than expected jobs in March, but the data was unlikely to sway the Federal Reserve from its current timetable for reductions to its stimulus program. The dollar made decent gains from the current rally in the early week but lost strength at the end of Friday’s trading session after the release of the Non-Farm Pay Rolls, showing a sign of a reversal to the downside.
The Labor Department reported Friday that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000. February’s figure was revised up to 197,000 from a previously reported 175,000. The U.S. unemployment rate also remained unchanged at 6.7%, compared to expectations for a tick down to 6.6%. This reports currently weakened the greenback against the commodity currencies at the end of Friday’s trading session.
Weekly bias on the pair is on the downside in the early trading session of the week as 1hour time-frame shows a reversal could emerge on the pair. Further supply to 102.500 psychological zones is expected but I strongly advise caution should be applied. However a break of 104.089 resistance would resume the rally to 105.400 resistance zones.
In the week ahead, market players will be focusing on Wednesday’s minutes of the Fed’s most recent policy setting meeting for further clues on the future course of monetary policy. Also investors would be monitoring the Japanese Yen Monetary Policy Statement and Press Conference.