- The greenback is weak on Wednesday in the market, leaving behind the rise of Tuesday post Powell.
- US ADP data in line with expectations, coming ISM manufacturing, Powell and Beige Book.
- USD / JPY testing support at 113.00, below remains 112.70, ahead of Tuesday’s bottom.
The USD / JPY is trading very close to 113.00, in the zone where it closed on Tuesday. The pair climbed in European hours to 113.63, but then changed direction and recently fell to 113.00.
The setback occurred due to some weakness, for now moderate, in the dollar throughout the market. The greenback, which had soared on Tuesday after the remarks of Jerome Powell, the chairman of the Federal Reserve, has yielded almost all those gains.
US ADP data showed private sector job creation of 534,000, in line with market expectations. The data will serve as a preview for what will be the official report on Friday. The dollar was not affected by the figures and continued in a kind of consolidation. Later on Wednesday the manufacturing ISM and the Fed’s Beige Book will come out.
USD / JPY bias points to the downside in the short term. From losing 113.00 the next support is seen at 112.70 which protects Tuesday’s low of 112.51. To the upside, a break and subsequent affirmation above 113.80 / 90, would remove some of the current downward pressures.
Technical levels
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