- The yen is strengthened by the fall in the stock markets throughout the world.
- USD / JPY reverses trend and falls to 111.35
- Ahead: US ADP Employment Data
The USD / JPY changed direction after the start of the European session and erased all daily gains. The climate of risk aversion outweighed the rise in Treasury yields and pushed the pair to 111.35 the new low for the day.
Previously, the USD / JPY had climbed to 111.78, the maximum in six days, at a time when the 10-year rate of the Treasury bond reached 1.57%. Then bonds regained ground and stocks accelerated the decline, driving the yen strongly along the market.
The Japanese currency is among those that rose the most on Wednesday, while the futures of the main Wall Street indices fall more than 1% and in Europe the markets yield an average of 2%.
In minutes ADP’s private employment report in the US will be published, which is expected to show an increase in private payrolls of 428,000. The data will serve as a preliminary to the official employment report for September that will come out on Friday.
If the downs extend, USD / JPY has next support at 111.20 / 25, then 111.00. On the upside, 111.55 has now become immediate resistance, followed by 111.75 / 80.
Technical levels
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