USD/JPY hovering around 113.50
By FXStreet The USD/JPY pair spiked to a fresh 2-week high of 114.55 at the beginning of the New York session, boosted by a better-than-expected US ADP employment report, but the pair quickly changed course as US equities fell.
Stocks later bounced, but the pair remained near its daily low, unable to attract buyers. Mid American afternoon, Fed’s Williams hit the wires saying that any changes in the interest-rate path may be modest and that the Central Bank maintains its latest stance, but the market is betting that a rate hike is now out of the table for this 2016, and it will take more than one strong employment report, to revert such idea.
In the meantime, the market maintains its sell-the-spikes stance, with the daily high stalling short of the key resistance at 115.05, the 38.2% retracement of its latest daily slump. At the time of writing, USD/JPY is trading around 113.60, having closed Wednesday with a 0.33% daily loss.
USD/JPY technical view
“Short term, the bearish pressure continues to increase, given that the technical indicators have accelerated their declines and reached fresh lows within bearish territory, although the price is still above a bullish 100 SMA, currently around 113.25, the …read more
Source:: FX Street
