Forex: USD/JPY soars above 96.50 on strong NFP

The dollar strengthened sharply and soared to a fresh 3 ½-year high against the yen after the February US nonfarm payrolls report came in much better than expected. The government reported the US economy added 236,000 new jobs, against 160,000 expected, while the unemployment rate fell to 7.7% fom 7.9% last month.

USD/JPY jumped over 70 pips right after the release and hit its strongest since Aug 2009 at 96.53. At time of writing, USD/JPY is trading around 96.45/50, where it records a 1.8% gain on the day.

As investors continue to assess the impressive report, the USD/JPY could extend gains, with 96.70 as immediate resistance followed by 97.00.