The USDJPY pair continues to edge lower, driven by weakness in the U.S dollar, with intraday sellers pushing price-action towards the lower end its the recent trading range, between 113.25 and 112.20.
Intraday trading sentiment surround the USDJPY is gradually turning bearish, with the pair earlier failing at 112.90 and also slipping below key daily support, at 112.70.
The USDJPY pair faces two key risk events later today, firstly, today’s ADP jobs report may be substantially weaker than expected, due to adverse weather effects in the United States during the previous month.
Secondly, the market is starting to re-price a December rate hike from the Federal Reserve, if Janet Yellen fails to communicate this message again to financial markets today, it may lead to a U.S dollar sell-off.
Key intraday USDJPY support below the 112.20 level is located at 111.90 and 111.69. Further key support is found at 111.48, with the pairs monthly pivot point, at 111.03.
To the upside, key intraday USDJPY resistance is found at 112.70, 112.90 and 113.25. Once above the 113.25 level, further resistance is found at 113.57 and 113.89.
