USD/JPY Current price: 112.22
- Waiting for US data at weekly lows.
- Falling bond yields keeping the JPY on demand.
The USD/JPY pair fell to 111.98 this Wednesday, finally closing the weekly opening gap, as the sour tone of worldwide equities and retreating bond yields, weigh. The pair bounced from such low but is hovering around the 112.20 level ahead of US data releases, clearly lacking upward strength. The US is set to release its latest private employment survey, the ADP, expected to come in at 185K from previous 235K. After such figure, the US will release its quarterly figures for unit labor cost and nonfarm productivity for Q3, with the market paying special attention to wages. Political headlines coming from the US will also matter, particularly those referring to the debt ceiling and the tax-reform bill.
From a technical point of view, the 4 hours chart for the pair shows that the risk remains toward the downside, as the price is unable to recover above a bearish 100 SMA, while the Momentum indicator resumed its decline within negative territory as the RSI consolidates around 47. US employment data will probably lead the way today, with upward surprises in the ADP and the wages numbers favoring a recovery toward 112.60 and beyond, particularly if yields change course after Wall Street's opening.
Support levels: 112.00 111.60 111.20
Resistance levels: 112.65 113.05 113.45
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.