- US Dollar rises further after economic data and ahead of FOMC minutes.
- USD/JPY recovers after finding support above 112.00.
The USD/JPY pair is rising on Wednesday, before the FOMC minutes. Recently it reached a fresh daily high at 112.50 and then pulled back. As of writing, trades at 112.35, gaining for the first time after falling during the previous three days.
The greenback gained momentum after the release of the ISM Manufacturing Index. It came in at 59.7 in December, surpassing expectations of 58.1. The ISM Price Paid index rose to 69.0 against the 65.0 estimate by analysts. “Another huge ISM reading shows the manufacturing sector is in great shape and will make a major positive contribution to economic growth this year”, said analysts from ING.
Now traders await the release of the FOMC minutes (19:00 GMT) that are likely to influence on the pair and also on US yields. USD/JPY could receive a boost to extend the recovery while on the downside if the US dollar cames under pressure a test of 112.00 is possible.
To the upside, resistance levels might be located at 112.50 (Jan 3 high), 112.65 (Dec 28 low) and 112.80 (Jan 2 high). On the opposite direction, support might be located at 112.15 (Jan 3 low), 112.00/05 (Dec 5 & Jan 2 low) and 111.70 (Nov 27 high).
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