2 Jul 2015
USD/JPY testing highs near 123.50
FXStreet (Mumbai) - USD/JPY remains strongly bid in the European session, extending its upbeat momentum for the second straight session, as the market favours the greenback ahead of the much awaited US payrolls data due later in the US session which is expected to spur volatility.
USD/JPY rises from 123.35
Currently, the USD/JPY pair trades 0.30% at 123.53, hovering close to highs reached at 123.57. The dollar-yen extends its recovery mode from five-week lows, filling up Monday’s gap, as the buck regained complete control on expectations of a stronger NFP print to be reported later today.
More so, the latest impressive ISM manufacturing and ADP employment data added to the greenback strength, with increasing expectations of a Fed rate hike as early as this Sept. While Greece headline took a back seat as traders now shifted focus on the US fundamentals.
Traders await the payrolls numbers for June, which are expected to post 233,000 jobs created, down from 280,000 in May, but still decent growth. The unemployment rate is predicted to tick lower from 5.5% to 5.4%. Moreover, average hourly earnings will be published, with the yearly change expected to stay at 2.3% growth.
Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinkert
USD/JPY Technical Levels
To the upside, the next resistance is located 123.20 (June 29 High) levels and above which it could extend gains 123.44 (June 22 High) levels. To the downside immediate support might be located at 122.40 (Today’s Low) below that at 122.10 (June 29 Low) levels.
USD/JPY rises from 123.35
Currently, the USD/JPY pair trades 0.30% at 123.53, hovering close to highs reached at 123.57. The dollar-yen extends its recovery mode from five-week lows, filling up Monday’s gap, as the buck regained complete control on expectations of a stronger NFP print to be reported later today.
More so, the latest impressive ISM manufacturing and ADP employment data added to the greenback strength, with increasing expectations of a Fed rate hike as early as this Sept. While Greece headline took a back seat as traders now shifted focus on the US fundamentals.
Traders await the payrolls numbers for June, which are expected to post 233,000 jobs created, down from 280,000 in May, but still decent growth. The unemployment rate is predicted to tick lower from 5.5% to 5.4%. Moreover, average hourly earnings will be published, with the yearly change expected to stay at 2.3% growth.
Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinkert
USD/JPY Technical Levels
To the upside, the next resistance is located 123.20 (June 29 High) levels and above which it could extend gains 123.44 (June 22 High) levels. To the downside immediate support might be located at 122.40 (Today’s Low) below that at 122.10 (June 29 Low) levels.