USD/JPY: Dollar Soars 1.6% to erase Two-Week Loss as January Jobs Surge to 353,000

Japanese yen took a heavy beating by returning US dollar bulls who propelled the exchange rate to ¥148.60.

• The USDJPY pair jumped 1.6% on Friday after stunningly strong job growth tore through Wall Street’s expectations. The US labor market added a staggering 353,000 new jobs in January, far outstripping analysts’ consensus calls for 187,000 Americans tapped to join the workforce.
• Forex traders rushed to buy up the greenback, resulting in a powerful spike across the board. The USDJPY erased a two-week loss, closing the session at ¥148.60. Early on Monday, dealmaking is slow to perk up, but the yen remains subdued as the buck reigns supreme once again.
• Why the sharp leg up? The surprise hotness in the labor market is likely to present an upside risk to the Federal Reserve’s planned agenda for three rate cuts this year. More precisely, it may be too soon to trim borrowing costs at any of the next three Fed officials’ meetings through mid-June.