USD/JPY is showing little movement on Wednesday, as the pair trades in the mid-119, within striking distance of the psychologically important 120 level. On the release front, ADP Nonfarm Employment Change slipped to 208 thousand, well off expectations. Later in the day, we’ll get a look at ISM Non-Manufacturing PMI. The markets are expecting a slight improvement in the November release, with an estimate of 57.5 points. There are no Japanese releases on Wednesday.
The Japanese yen continues its disappearing act, as USD/JPY has its sights on the 120 level, which hasn’t been breached since April 2009. On Monday, the yen lost ground after a weak report from Average Cash Earnings, which slipped to 0.8% in October, short of the forecast of 0.5%. The softer reading points to less disposable income for the Japanese worker, which means a drop in spending. On Monday, the Moody’s rating agency downgraded Japan’s debt from Aa3 to A1, citing “heightened uncertainty” over the ability of the government to reduce the debt. The downgrade is seen as a response to Prime Minister Abe’s decision to delay a sales tax hike and the negative GDP reading, which means that the country is officially in a recession.
USD/JPY has shown limited movement throughout the day.
118.89 remains a weak support level. 117.94 is stronger.
119.93 is an immediate resistance line.USD/JPY ratio is pointing to gains in short positions on Wednesday, reversing the direction seen a day earlier. This is not consistent with the pair’s movement, as the yen has posted small gains. The ratio has a majority of long positions, indicative of trader bias towards the dollar moving to higher ground.
The Japanese yen continues its disappearing act, as USD/JPY has its sights on the 120 level, which hasn’t been breached since April 2009. On Monday, the yen lost ground after a weak report from Average Cash Earnings, which slipped to 0.8% in October, short of the forecast of 0.5%. The softer reading points to less disposable income for the Japanese worker, which means a drop in spending. On Monday, the Moody’s rating agency downgraded Japan’s debt from Aa3 to A1, citing “heightened uncertainty” over the ability of the government to reduce the debt. The downgrade is seen as a response to Prime Minister Abe’s decision to delay a sales tax hike and the negative GDP reading, which means that the country is officially in a recession.
USD/JPY has shown limited movement throughout the day.
118.89 remains a weak support level. 117.94 is stronger.
119.93 is an immediate resistance line.USD/JPY ratio is pointing to gains in short positions on Wednesday, reversing the direction seen a day earlier. This is not consistent with the pair’s movement, as the yen has posted small gains. The ratio has a majority of long positions, indicative of trader bias towards the dollar moving to higher ground.
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