USD/JPY slips to lows near 118.30, ADP eyed

FXStreet (Edinburgh) - The ongoing risk aversion continues to lend support to the Japanese currency on Wednesday, dragging USD/JPY to fresh lows near 118.30.

USD/JPY attention to US ADP

The solid tone around the safe have JPY keeps weighing on the pair, which is already trading in the low-118.00s, near 3-month lows and on track to test October’s lows at 118.06 level.

Next of relevance for the pair will be the ADP report, Factory Orders and the FOMC minutes in the US economy.

USD/JPY levels to consider

As of writing the pair is retreating 0.59% at 118.32 facing the next support at 118.06 (low Oct.15) followed by 116.46 (low Aug.24) and then 115.82 (low Jan.16 2015). On the flip side, a breakout of 120.77 (high Dec.30) would open the door to 121.04 (100-day sma) and finally 121.61 (200-day sma).

Jan 6, 2016

UK: Services PMI drops more than expectations - TDS

Research Team at TDS, notes that UK December’s services PMI fell slightly more than markets expected to 55.5, leaving it just above its long-run trend of 55.2.

FOMC Minutes Preview: Expect minutes to explain future course of rate hikes

At its December 15-16 meeting the US Federal Reserve decided to end its zero interest rate regime that was held steady for almost a decade. The Fed finally raised increased the Fed funds target range by +25bps to 0.25%-0.5%. Fed chair Yellen declared that the pace of subsequent rate hike would be gradual and dependent on incoming economic data. Yellen, at the post meeting press conference stressed that “future policy actions will obviously depend on how the economy evolves.”