USD/JPY is down 217 pips on the day to 147.22.
It fell as low as 147.03 in the aftermath of the non-farm payrolls report compared to 149.00 just before the data. It's the lowest since March and erases a huge runup in the pair that caused considerable angst for Japanese policymakers.
![USDJPY daily chart](https://images.forexlive.com/images/USDJPY%20daily%20chart_id_8b66c2df-5d40-4b9a-b085-3cba8f8bffb5_original.jpg)
The reversal in fortunes for this pair upended the Nikkei 225 earlier today as it fell 5.8% in its largest fall since 1987. Further declines in this pair could do further damage.
The shirt comes on a major rethink of US monetary policy levels following a drop in inflation and a turn in the economy. The US unemployment rate rose to 4.3% compared to 4.1% while 114K jobs were added compared to 175K expected.
S&P 500 futures are down 1.45% after the data following a sharp drop yesterday. USD/JPY acts as a safe haven in times of market stress and there is a huge carry trade built up in the pair. For now, the zone around 146-147 should offer some support but if we see major pain in equities, the pair could continue down to the low 140s.
At the moment, the pair is majorly oversold so I would be cautious about selling while keeping a close eye on equities and bonds.