USD/JPY chart on Trading View used for analysis
- USD/JPY edges higher as dollars gathers strength ahead of the crucial NFP data.
- Data overnight showed that the US economy in December added 271K new jobs according to the ADP employment report.
- December 2018 ADP employment report beat expectations at 179K, saw the best job creation since Feb 2017 and the fourth largest monthly job creation since the 2009 recession.
- Upbeat ADP report has raised expectations of the upside surprise in Friday’s non-farm payroll report. Market forecast for NFP of 177K.
- Further, reports that the US House of Representatives passed the bill that would end the shut down for several agencies lifted the greenback.
- Yen on the other hand was undermined by a bit of jawboning from the Japanese authorities.
- USD/JPY is hovering around 61.8% Fib. The pair finds imeediate resistance at 5-DMA at 108.94.
- Break above 5-DMA could see test of 21-EMA at 110.98. Decisive break above 200-DMA could see more upside.
- Techs are largely biased lower. However, momentum indicators are at oversold levels which could see minor bounce at current levels.
Support levels - 106.75 (78.6% Fib), 104.81 (200M SMA), 104.62 (Mar 2018 low), 104
Resistance levels - 108.41 (61.8% Fib), 108.95 (5-DMA), 111.05 (200-DMA)
