- USD / JPY is up for the sixth day in a row.
- Decline of the dollar and bond yields limits rise.
- Ahead: US data (ADP employment and home sales) and infrastructure plan presentation.
USD / JPY retraced after approaching 111.00, finding support at 110.50, from where it bounced. It is trading at 110.75, up about 45 pips for the day on the ADP private employment report preview.
The dollar it reached highs since March last year and continues with a strong bullish tone despite overbought indicators. It lost steam after a slight pullback in Treasuries and a downward correction of the US dollar Still the US dollar index (DXY) retained most of the recent gains and is trading about 93.00.
Wall Street futures for now point to an open on neutral ground. Operators are waiting for the March ADP employment report. Then it will be the turn of the Chicago PMI report and existing home sales data. In addition, another event to take into account will be the presentation of President Biden’s infrastructure plan, near the closing of the American markets.
The USD / JPY uptrend remains intact despite the long run without major corrections. The 111.00 zone has slowed the dollar for now. After finding support, the price is approaching again. If confirmed above 111.00, a bullish extension could be expected, while if it suffers a rejection, some signs of possible consolidation would emerge.
Technical levels
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