USD/JPY pulls away from weekly highs after US data, clings to gains around 104.60
|- USD/JPY rose to its highest level in a week at 104.75.
- Private sector employment in the US rose less than expected in November.
- Wall Street's main indexes look to start the day in the negative territory.
After closing flat on Tuesday, the USD/JPY pair gained traction and rose to a fresh weekly high of 104.75 on Wednesday. The pair, however, edged lower in the last hour and was last seen trading at 104.60, where it was still up 0.3% on the day.
Focus shifts to Wall Street's opening bell
The modest USD recovery on Wednesday helped USD/JPY push higher. After touching its lowest level in more than two years at 91.10 earlier in the day, the US Dollar Index (DXY) climbed to 91.50 during the European trading hours.
After the data published by the Automatic Data Processing (ADP) Research Institue showed that private sector employment in the US increased by 307,000 in November, the DXY lost its traction and turned flat near 91.30.
In the meantime, major equity indexes in the US remain on track to start the day in the negative territory with the S&P 500 Futures losing 0.35% ahead of the opening bell. Despite the poor performance of US stocks, the 10-year US Treasury bond yield is up nearly 1% on the day, helping USD/JPY stay in the green.
Later in the session, the ISM-NY Business Conditions Index and the Federal Reserve's Beige Book will be looked upon for fresh impetus.
Technical levels to watch for
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