Fed on track for November taper
Yes, the NFP print was a miss and that provided a short term opportunity to go long gold on a yield play. However, the revisions were higher to last month's headline, the unemployment a dip and enough caveats to make it easy to overlook. See Adam's take on it here.
Furthermore, it was only going to be a disastrous jobs report that gets the Fed to change tack from a widely flagged November taper and mid year end goal for a taper completion. The surge higher in US10 year yields helped weaken the JPY on Friday and a dip lower into support should mean the USDJPY is a buy on dips for the medium term. Especially now we have seen extra JPY strength to start the weak.
Look for decent dip buyers at lower levels with 112.20 looking better than this level I marked on the chart to start the week. Just shows what a rip higher we have seen in the USDJPY!
