USD/JPY weaker on US ADP, data

US ADP report matched expectations.
Spot unchanged in the low-112.00s.
Attention now shifted to payrolls on Friday.

Pablo Piovano FXStreet

The greenback is trading with moderate losses vs. the Japanese safe haven on Wednesday, with USD/JPY meandering the low-112.00s for the time being.

USD/JPY unchanged on data

The pair manages well to keep the trade above the 112.00 mark after US ADP showed the private sector added 190K jobs during November, in line with initial forecasts.

Further US data saw nonfarm productivity expanding 3.0% inter-quarter in Q3 and unit labor costs contracting 0.2% QoQ in the same period.

Spot remains under extra downside pressure stemming from the US money markets, where yields of the 10-year benchmark are testing lows in the boundaries of the 2.32% handle.

USD/JPY levels to consider

As of writing the pair is down 0.48% at 112.07 and a breach of 112.00 (low Dec.5) would open the door to 111.90 (38.2% Fibo of 107.33-114.73) and then 111.68 (200-day sma). On the other hand, the next up barrier is located at 112.77 (55-day sma) seconded by 112.88 (high Dec.5) and finally 113.09 (high Dec.4).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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