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2 Sep 2015
USD/JPY hourly 200 SMA capping upside on 120 handle
FXStreet (Guatemala) - USD/JPY is anchored on the 120 handle although the greenback is a little firmer across the board, and took the 120 handle back yesterday in an early and lively Tokyo opening hour.
USD/JPY has been capped by the descending 200 SMA on recovery attempts with a high of 120.47 in Tokyo overnight when it rallied from 119.70 on the open, up from the lows made in early thin Asian trade down at 119.36 post a poor close on Wall Street, Europe and overnight Asian equities.
Today, however, Chinese stocks trimmed earlier losses, with the Shanghai Composite ending down only 0.2% and the Shenzhen Composite down 2%. The Euro Stoxx 600 was up 0.2% near midday earlier in Europe, while S&P futures were pointing to a higher open, and now currently +12%, all supporting a more positive outlook and underpinning strength in the greenback.
The data today was a key indication of Friday's Nonfarm Payrolls and came in the form of the ADP report. Details to this are here>, but essential do not hold prospect of a super-crazy day on the back of inline Nonfarm numbers, as predicted by this report.
However, the ADP report is just indication of how Friday might pan out, and analysts at TD Securities explained that a number of employment indicators continue to point toward sustained labor market progress in the coming months, "We expect positive labor market momentum to continue in August, with the economy adding another 226K jobs following a decent 215K gain last month. With payroll gains set to exceed 200K for a 4th straight month (6 out of 8 months in 2015), reinforcing the current positive narrative on labor market activity."
USD/JPY remains below 120.70 DMA
The break of the 200 DMA below 120.70 is a bearish signal and remains a compelling factor when looking at the technical outlook for the major. Looking further back, the 116.15/115.85 come as key support levels on follow through.
From here, the downside levels to watch now are 119.20 from yesterday's area of support and the 118.33 level as the March lows that then guard 115.85 2015 lows. Below there, 113.98 2011 low guards 105.85, the 38.2% retracement of the move up from 2011 and 200 month MA.
To the upside, closes above 120.20 and 120.70 200 DMA put the pair back into neutral for a fighting chance of territory back on the 122 handle.
USD/JPY has been capped by the descending 200 SMA on recovery attempts with a high of 120.47 in Tokyo overnight when it rallied from 119.70 on the open, up from the lows made in early thin Asian trade down at 119.36 post a poor close on Wall Street, Europe and overnight Asian equities.
Today, however, Chinese stocks trimmed earlier losses, with the Shanghai Composite ending down only 0.2% and the Shenzhen Composite down 2%. The Euro Stoxx 600 was up 0.2% near midday earlier in Europe, while S&P futures were pointing to a higher open, and now currently +12%, all supporting a more positive outlook and underpinning strength in the greenback.
The data today was a key indication of Friday's Nonfarm Payrolls and came in the form of the ADP report. Details to this are here>, but essential do not hold prospect of a super-crazy day on the back of inline Nonfarm numbers, as predicted by this report.
However, the ADP report is just indication of how Friday might pan out, and analysts at TD Securities explained that a number of employment indicators continue to point toward sustained labor market progress in the coming months, "We expect positive labor market momentum to continue in August, with the economy adding another 226K jobs following a decent 215K gain last month. With payroll gains set to exceed 200K for a 4th straight month (6 out of 8 months in 2015), reinforcing the current positive narrative on labor market activity."
USD/JPY remains below 120.70 DMA
The break of the 200 DMA below 120.70 is a bearish signal and remains a compelling factor when looking at the technical outlook for the major. Looking further back, the 116.15/115.85 come as key support levels on follow through.
From here, the downside levels to watch now are 119.20 from yesterday's area of support and the 118.33 level as the March lows that then guard 115.85 2015 lows. Below there, 113.98 2011 low guards 105.85, the 38.2% retracement of the move up from 2011 and 200 month MA.
To the upside, closes above 120.20 and 120.70 200 DMA put the pair back into neutral for a fighting chance of territory back on the 122 handle.