The market took 20 minutes to digest the report and now the US dollar is beginning to sag again.
In the bigger picture, the US dollar is fighting against gravity. USD/JPY has risen for 10 consecutive days heading into today. To sustain that kind of altitude you need rocket fuel from the headlines but non-farm payrolls were an anchor.
USDJPY daily – 10 days of gains
In the short term, I think US dollar bears need to wait. At the open of the US stock market, I think some panicky sales will hit based on yesterday’s headlines; it will take about 30 minutes to settle and them ISM manufacturing data is due.
After that is when the better dollar selling will come.
