Forexpros – The dollar fell against the yen on Monday, extending Friday’s losses from news that the U.S. economy added less jobs in March than expected, and also on reports that Japanese balance of payments data came in stronger than expected.
In Asian trading on Monday, USD/JPY hit 81.52, down 0.15%, up from a low of 81.20 and off a high of 81.58.
The pair sought to test support at 81.20, the earlier low, and resistance at 82.56, Friday’s high.
In the U.S. on Friday, the Labor Department reported the world’s largest economy added a net 120,000 nonfarm payrolls in March, well below market expectations for a gain of around 203,000.
The government revised February’s payrolls to 240,000 from 227,000, but cut January’s figure by 9,000 to 275,000.
The news sparked concerns the Fed may reconsider stimulating the economy via liquidity injections into the banking sector under a policy known as quantitative easing, which weakens the dollar in exchange for price stability.
The news sent investors snapping up positions in the yen, a safe-haven currency, as well as on reports the country reported a current account surplus in February.
Furthermore, reports that North Korea was planning to test launch a long-range missile sparked demand for the yen.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.21% and trading at 129.29 and EUR/JPY down 0.44% and trading at 106.43.
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