Dollar Dips Against Yen Amid Jobs Report Disappointment
On August 10th, Christopher Lewis from DailyForex noted that the US dollar had fallen against the Japanese yen on Friday, but maintained support just below current levels. The drop in value came after a jobs report revealed a negative 23,000 jobs instead of the expected addition of 85,000 jobs.
Lewis observed that despite this decline, the market has bounced back from the bottom and is currently trading near the 200-day EMA (Exponential Moving Average). The interest rate differential still favors the US dollar, with a slight dip in rates providing some relief for the yen. However, Lewis warned of central bank intervention concerns and a carry trade strategy, which could impact market confidence.
Lewis has been long on this pair for months and plans to stay that way, at least for now, taking advantage of the interest rate differential. He noted that if the price were to break down below 155 yen, he would close out his position with around 60% of his gains being the swap.