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).