US ADP: What to Expect of USD/JPY?
The US publishes its ADP Employment Change report later
in the European afternoon, with market consensus expecting the US
private sector to remain in a healthy form and add near 200K jobs during
April, all ahead of the critical Non-farm Payrolls due on Friday.
A
positive print today will surely add to the ongoing USD recovery, which
briefly tested the 91.90 area when tracked by the US Dollar index (DXY)
on Tuesday, levels last seen in January 2015.
In the meantime, USD/JPY
is prolonging its march north, advancing uninterruptedly since Monday,
backed by a profit taking sentiment in JPY following the recent strong
advance and the bid tone in the greenback.
Regarding technical
levels, recent multi-month lows in the mid-105.00s appear as the interim
support, while the 20-day sma in the upper 108.00s emerges as the next
up barrier of relevance followed by recent peaks in the 112.00
neighbourhood.
