USD/JPY Turns Negative Post-ADP
The greenback is now eroding its earlier gains vs. the Japanese currency, sending USD/JPY to daily lows in the 106.40 area.
USD/JPY lower on poor ADP
The
pair met further selling pressure after US ADP report has missed
expectations in April, showing the US private sector has created 156K
jobs during last month vs. 196K initially estimated and down from March
194K (revised from 200K).
Later in the session, USD will remain
the centre of attention in light of the releases of US Trade Balance,
Markit’s Services PMI, ISM Non-manufacturing, Factory Orders and the
weekly report on crude oil inventories by the EIA.
USD/JPY levels to watch
As
of writing the pair is retreating 0.21% at 106.41 and a breakdown of
105.55 (2016 low May 2) would open the door to 105.18 (monthly low
Oct.2014) and then 101.97 (monthly low Aug.7 2014). On the flip side,
the next up barrier lines up at 108.89 (20-day sma) followed by 111.30
(55-day sma) and finally 111.92 (high Apr.28).
