- The dollar wakes up and rebounds strongly.
- Treasury yields rise supporting USD/JPY.
- The pair tests the 144.55 resistance zone.
The USD/JPY posted a fresh daily high at 144.59, following US data. Previously the pair was already in recovery mode, before a general rebound of the dollar throughout the market.
The pair is testing the resistance zone around 144.55. In case of affirming above, the dollar would gain support for more rises, targeting the next resistance located at 144.90. In the opposite direction, immediate support is at 144.25. If this level is lost, the intraday bias would become neutral/negative. Already a consolidation below 143.90 would suggest further downside ahead and a possible test of Wednesday’s low of 143.52,
The pair gained support on Monday as Treasury yields rose. Following the latest US economic data, the 10-year tranche set new daily highs at 3.72%. In turn, the dollar is firmer after several days of weakness. DXY rises from weekly lows, and advances 0.97%, back above 111.00.
The ADP employment report showed an increase in private sector jobs of 208,000, slightly above the 200,000 expected. In turn, the trade deficit for August was slightly lower than expected. In minutes, activity figures for the US services sector for September will be known with the S&P Global PMI report and the ISM.
With regard to data, the focus is shifting to what will be the official US employment report for September on Friday, which includes non-farm payrolls, which are expected to increase by 250,000.
Technical levels
Source: Fx Street
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