USD/JPY near day’s high after strong US ADP jobs report

FXStreet (Mumbai) - The USD/JPY pair extended gains to hit a high of 119.48 after the ADP Employment Change printed higher-than-expected, although gains were quickly erased due to the decline in the Treasury yields.

At the time of writing, the pair traded 0.78% higher at 119.37 levels; largely unchanged from the pre-data levels. The ADP Employment change in December came-in at 241K, beating the estimate of 225K, and higher than the November’s 208K. The better-than-expected data did push the US 10-yr Treasury yield to a high of 1.994%, although the yields quickly dropped back to 1.973% level, thereby capping gains in the USD/JPY pair.

USD/JPY Technical Levels

The pair has an immediate resistance located at 119.65 (5-DMA) and 119.83 (10-DMA). Meanwhile, support is seen at 119.24, under which the pair could re-test 118.79 (50-DMA) levels.

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