USD/JPY hourly 200 SMA capping upside on 120 handle

By FXStreet FXStreet (Guatemala) – USD/JPY is anchored on the 120 handle although the greenback is a little firmer across the board, and took the 120 handle back yesterday in an early and lively Tokyo opening hour.

USD/JPY has been capped by the descending 200 SMA on recovery attempts with a high of 120.47 in Tokyo overnight when it rallied from 119.70 on the open, up from the lows made in early thin Asian trade down at 119.36 post a poor close on Wall Street, Europe and overnight Asian equities.

Today, however, Chinese stocks trimmed earlier losses, with the Shanghai Composite ending down only 0.2% and the Shenzhen Composite down 2%. The Euro Stoxx 600 was up 0.2% near midday earlier in Europe, while S&P futures were pointing to a higher open, and now currently +12%, all supporting a more positive outlook and underpinning strength in the greenback.

The data today was a key indication of Friday’s Nonfarm Payrolls and came in the form of the ADP report. Details to this are here>, but essential do not hold prospect of a super-crazy day on the back of inline Nonfarm numbers, as predicted by this report.

However, the ADP report …read more

Source:: FX Street