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
AUD/USD holds steady near 0.6250 ahead of RBA Minutes
The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Tuesday for some insight into the interest rate outlook.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold price bulls seem non-committed around $2,620 amid mixed cues
Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
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.