USDJPY has been on our radar for tradable opportunities for quite a while. hence, we had it all planned out during the weekend on what to look out for. Finally, USDJPY clears 114.50 barriers; What next?
08 March, AtoZForex -U.S. dollar rejoiced over the ADP data which was released earlier on. The market was hoping for a pullback to 184K from the 246K reported last month but obverse was the case as the data released was far above forecast. ADP report showed that private payroll grew by 298k in January, comparing to the consensus of 184k. Previous month’s figure was also revised up from 246k to 261k. The data affirmed general expectation of a solid non-farm payroll report to be delivered this Friday. which should solidify the case for Fed to deliver the highly expected rate hike next week. Also released in US session, Q4 non-farm productivity was finalized at 1.3% while unit labor costs at 1.7%. From Canada, housing starts rose 1k to 210k in February. Building permits rose 5.4% mom. Labor productivity rose 0.4% qoq in Q4.
The U.S dollar rallied as doubts over Fed hike fizzles away with the fantastic ADP data. USDJPY found a reason to finally push as it made a run above the 114.50 barriers. As the day proceeds, we want to see USDJPY close convincingly above this barrier if the bullish tone must continue.
USDJPY clears 114.50 barriers; What next?
USDJPY Daily Technical Analysis
Technically, USDJPY has crossed its first hurdle which is the 114.50 resistance and a trendline connecting the high of January to the high of February. In our weekly trade ideas USDJPY weekly trade ideas as Fed talks up March, we were hoping for a pull back to the 200-Day MA for a possible buy opportunity, this, however, did not surface as the retracement was quite shallow.
Going forward, USDJPY has a final hurdle which happens to be the top of the range around the 115.50 region. A daily close above the 114.50 region would have price accelerate to the top of the daily range. The only condition to our possible bullish run is, 114.00 should keep holding as support. A breach of 114.00 will have us switch to the alternate view. Be sure to be updated on any actionable trading opportunity as the week progresses especially on USDJPY and other opportunities elsewhere.
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