Forexpros – The dollar fell against the yen on Friday after the U.S. Bureau of Labor Statistics revealed the economy added a net 69,000 nonfarm payrolls in May, sparking talk of Federal Reserve stimulus measures that would weaken the greenback.
In U.S. trading on Friday, USD/JPY hit 78.10, down 0.28%, up from a low of 77.66 and off a high of 78.65.
Support for the unit was seen at 77.66, the earlier low, and resistance seen at 78.99, the high of May 31.
In the U.S., the Bureau of Labor Statistics reported earlier that the economy added a net 69,000 net nonfarm payrolls in May, far below expectations for a gain of around 150,000.
The unemployment rate rose to 8.2% from 8.1%.
The jobs data sparked widespread talk the Fed will consider stimulating the economy via monetary easing measures to ensure price stability and more optimal employment conditions at the expense of the dollar’s strength.
Weaker-than-expected U.S. manufacturing data sent the greenback falling as well.
The Institute for Supply Management reported that its national factory activity index dropped to 53.5 in May from 54.8 in April, just missing expectations for 53.9.
The news sent investors selling dollars and stocking up on yen, a safe-haven currency.
Uncertainty surrounding the fate of debt-ridden Europe coupled with cooling Chinese growth also sparked demand for the yen.
The yen, meanwhile, was up against the pound and down against the euro, with GBP/JPY down 0.42% and trading at 120.15 and EUR/JPY up 0.30% and trading at 97.13.
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