US Dollar Outlook: Market slumps Following Mild NFP

This past week saw a significant decline in the DXY index, which momentarily hit its lowest level since the 9th of April. The main causes of this selloff were lower-than-expected U.S. employment data and declining U.S. Treasury yields after the Federal Reserve's monetary policy decision.

The US non-farm payrolls report, which followed, added to the currency's downward reversal by revealing an unanticipated slowdown in job creation and a loosening of wage pressure.


USD/JPY TECHNICAL OUTLOOK

This last week saw a decline in USD/JPY, breaking through multiple support zones and heading toward the daily trendline-supported 72-day EMA. In order to contain the downward trend, buyers must maintain prices above these key indications; otherwise, a fall down towards the support at 146.48 could occur.

If there is a bullish reversal, 158.00 is a possible minor resistance level. When the weekly swing high, which is located around 160.00, is broken, the USD/JPY will reach a new significant high not seen since April 1990. All eyes will be on this level above.