Slobodan Drvenica
Windsor Brokers
USD/JPY
The USDJPY holds in red for the fourth straight day and hit one-week low on Thursday, as markets await release of US May labor report on Friday.
Today’s ADP report showed much stronger than expected hiring in the US private sector, though positive impact was offset by strong downside revision of unit labor cost (Q1 4.2% vs 6.0% f/c, 6.3% prior) while US weekly jobless claims came near expectations.
US NFP would provide more evidence about the situation in the labor market to the US central bank, as bets for another hike in June grow, although the whole picture will be incomplete until June 13, when May inflation report will be released, just day ahead of the end of Fed’s policy meeting.
Technical structure on daily chart is weakening on fading bullish momentum and south-heading stochastic and RSI, however, the pullback so far looks like a healthy correction and having more space to extend lower without significantly hurting larger bulls, as moving averages remain in bullish setup and recent formation of 20/200 golden cross, underpins.
Bears pressure initial Fibo support at 138.26 (23.6% of 129.64/140.93 rally) which guards lower pivots at 137.27 (200DMA) and 136.61 (Fibo 38.2%), loss of which would open way for deeper pullback.
Res: 139.36; 140.00; 140.93; 142.25.
Sup: 138.26; 137.61; 137.27; 136.61.
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD recovers from two-year lows, stays below 1.0450
EUR/USD recovers modestly and trades above 1.0400 after setting a two-year low below 1.0350 following the disappointing PMI data from Germany and the Eurozone on Friday. Market focus shifts to November PMI data releases from the US.
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as investors await US PMI data releases.
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark
Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.
S&P Global PMIs set to signal US economy continued to expand in November
The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.