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6 May 2015
USD/JPY muted near 119.85
FXStreet (Mumbai) - The US dollar wiped out losses and trades dead flat versus the yen in the mid-European session , lifting USD/JPY from session lows, largely as the US dollar stalled its downslide and recovered partial losses versus its major competitors. While markets now eagerly await US ADP non-farm employment data for further direction on the major.
USD data in focus
Currently, the USD/JPY pair trades modestly flat at 119.82, recovering from fresh session lows reached at 119.65. The USD/JPY pair recovered losses as traders unwind their USD shorts ahead of key events later in the US session – ADP non-farm employment data and Fed Chair Yellen’s speech in Washington.
The US dollar index which measures the relative strength of the greenback versus six major currencies retreated from 94.70 lows and now trades at 95, down -0.25% on the day.
Meanwhile, according to the CFTC and Rabobank's research, USD longs continued to decline as the greenback found itself under pressure. Although net positioning is still firmly in long territory, USD net longs are at their lowest level since December of last year.
Looking ahead, the critical non-farm payrolls figures are due on Friday, expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.30 (May 1 High)) levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119.65 (Today’s Low) below that at 119.34 (May 1 Low) levels.
USD data in focus
Currently, the USD/JPY pair trades modestly flat at 119.82, recovering from fresh session lows reached at 119.65. The USD/JPY pair recovered losses as traders unwind their USD shorts ahead of key events later in the US session – ADP non-farm employment data and Fed Chair Yellen’s speech in Washington.
The US dollar index which measures the relative strength of the greenback versus six major currencies retreated from 94.70 lows and now trades at 95, down -0.25% on the day.
Meanwhile, according to the CFTC and Rabobank's research, USD longs continued to decline as the greenback found itself under pressure. Although net positioning is still firmly in long territory, USD net longs are at their lowest level since December of last year.
Looking ahead, the critical non-farm payrolls figures are due on Friday, expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.30 (May 1 High)) levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119.65 (Today’s Low) below that at 119.34 (May 1 Low) levels.