- Private hiring in the US exceeded estimates; USD/JPY wavered but later fell.
- ISM Non-Manufacturing PMI rises in April, despite moderation in hiring.
- Investors are focused on the US Federal Reserve’s decision and Powell’s press conference.
He USD/JPY fell for the second day in a row, influenced by the drop in the 10-year US Treasury yield amid mixed market sentiment spurred by the Federal Reserve’s (Fed) monetary policy decision that looming Therefore, US Treasury yields are falling, particularly the 10-year yield, which is closely correlated with USD/JPY. At the time of writing, USD/JPY is trading at 135.14, down 1.03%.
USD/JPY is pressured by falling US bond yields and risk appetite.
US stocks are fluctuating ahead of the Fed decision. US ADP Employment Change Report, which reveals how private hiring is doing in the country, jumped surprisingly by 296,000 topping estimates of 148,000 and March data of 142,000. Additionally, the data showed that while hiring increased, wages cooled from 14.2% to 13.2%, according to the ADP Research Institute report.
Upon reporting, USD/JPY approached 136.00 before making a U-turn and falling 60 pips towards the 135.40 area before extending its losses.
Lately, the US ISM Non-Manufacturing PMI data for April rose to 51.9 from 51.2 in March. They reported that a measure of prices paid held near its lowest level, while hiring moderated.
Due to the Golden Week holidays, the absence of the Japanese economic calendar keeps investors watching the dynamics of the US dollar (USD) and market sentiment.
The Federal Reserve will release its decision ahead of the session, followed by Chairman Powell’s press conference, which is widely expected by USD/JPY traders.
USD/JPY Technical Analysis
The daily chart of USD/JPY shows the pair with a neutral to bearish bias after failing to break the March 8 high at 137.91, compounding the decline below the 200-day SMA at 137.43. In addition, a dark cloud covering candlestick chart pattern, formed over the last two days prior to today, opened the door for a drop of more than 1%, with sellers testing the previous swing high of April 19. at 135.14; previous resistance became support. A break of the latter would expose 135.00, followed by the 20-day SMA at 134.17. Conversely, if USD/JPY buyers hold the spot above the April 19 high, the pair could rally to 136.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
