Yen strengthened against the USD and EUR during the US session last Friday on risk aversion worst than expected non-farm payroll report from US. Job market contracted slightly more than expected by -190k in October, worse than consensus of -165K. unemployment rate which soared to 26 year high of 10.2% versus consensus of 9.9%.
After the painful employment figures in the US, the market will have more time to digest the news this week.
EUR/JPY recovered strongly during the middle of the week but retracement to 50% in the last two days showed that t the upside was limited below 135.97 resistance and thus retain the near term bearish outlook that fall from 138.47 is still in progress. Friday's fall and touching of 133.15 breaking minor support of 133.36, indicated a bias downward retesting 132.50 first. Break will bring fall resumption towards 131.72 next. However, note that a break of 135.72 resistance will argue that fall from 138.47 has completed and will turn outlook bullish for retesting this resistance first.
