The dollar firmed against the yen on Thursday after official data revealed that the U.S economy picked up more jobs in June than expected just a day after a private-sector report of ADP Non-Farm Employment revealed likewise. The dollar firmed after the U.S. Department of Labor reported that non-farm payrolls rose by 288,000 in June, easily surpassing expectations for an increase of 212,000. May’s figure was revised up to a gain of 224,000 from 217,000.
The unemployment rate ticked down to 6.1% from 6.3% in May. Analysts had expected the jobless rate to hold steady at 6.3% last month. A day earlier payroll processor ADP reported in its nonfarm payrolls report that the U.S private sector added 281,000 jobs last month, beating expectations for an increase of 200,000. The numbers firmed the dollar by keeping expectations on track for the Federal Reserve to continue tapering stimulus programs this year and raise interest rates the next. Fed stimulus programs such as monthly bond purchases aim to spur recovery by suppressing long-term interest rates, weakening the dollar as a side effect.
Intra-day bias remains on the upside with EMA’s 21 and 55 signaling demand of the pair on the 1 hour and 4 hours tim-frame respectively. MACD, RSI and SSRC stochastic oscillators are also showing bullish continuation on the pair, a break of 102.339 resistance would bring further rise to 102.782 resistance.