• The pullback in Treasury yields and lower expectations of growth/inflation elsewhere could help USD.
  • Trade war fears and risk aversion could play spoilsport.
The USD/JPY pair has fallen back below 107.00 - inverse head-and-shoulders neckline, signaling 'fake bullish breakout'. The retreat could be associated with the risk aversion in the equities. The US economy added only 103k jobs in March - the lowest print since last September, according to non-farm payrolls report. The February figure was revised higher to 326 K, taking the Q1 average to 202K. The headline figure may have hurt the US dollar, however, it isn't necessarily a bad number as it could be an indication of shrinking labor market slack, given the unemployment rate stands at a 17-year low. Also, the underemployment rate fell to a new cyclical low of 8.0% from 8.2%, signaling shrinking slack. source fxstreet
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