USD/JPY Continues Upside Move As Buyers Remain In Control

Share news

The US Dollar (USD) inched higher against the Japanese Yen (JPY) on Wednesday, increasing the price of USD/JPY to more than 110.50 ahead of the US ADP Employment Change news. The technical bias remains bullish because of a higher high in the recent upside move.

Technical Analysis

As of this writing, the pair is being traded around 110.63. The pair is expected to face a hurdle near 110.76, an immediate trendline resistance area ahead of 111.00, the psychological number and then 111.15, another trendline resistance as demonstrated with red color in the given below chart.

USD/JPY Continues Upside Move As Buyers Remain In Control

On the downside, a support may be seen near 110.56, the lower trendline ahead of 110.26, the low of last major downside move and then 110.00, the psychological number. The technical bias shall remain bullish as long as the 110.00 support area is intact.

US ADP Employment Change

The Automatic Data Processing, Inc. is due to release the Employment Change data today during the US trading session. According to the average forecast of different economists, 187k news jobs were added during March as compared to the addition of 298k new jobs. ADP employment change is a measure of the change in the number of employed people in the US. Generally speaking, a rise in this indicator has positive implications for consumer spending, stimulating economic growth. So a high reading is traditionally seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels appears to be a good strategy in short to medium term.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. FXOpen UK: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
FXOpen EU: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.