Dollar Sees Wild Ride After Jobs Report Sends Yields Soaring

The US dollar had a wild ride on Friday as the jobs report came out much hotter than anticipated, sending yields soaring and causing the USD/JPY pair to rally. However, after a brief surge, the pair has since settled back down.

According to Christopher Lewis, a technical analyst at DailyForex, 'We are at an area that has been support a couple of times in the past in the dollar against the yen pair, so I am watching this very closely.' This key support level has been tested before, and Lewis is considering it as a potential exit point for his longer-term positions.

Despite the trend line being broken, Lewis notes that 'the great thing about trend lines is you can draw them pretty much anywhere,' implying that he doesn't put too much credence in this development. He also speculates that a bounce from here could keep the pair range-bound for a while, with the interest rate differential continuing to widen.

Lewis mentions that part of the initial reaction may have been due to a lack of liquidity, as it was non-farm payroll Friday on a 3-day weekend. He is closely watching this area and will determine his next moves based on the market's response.