The USDJPY pair declined sharply on Thursday and was trading 0.80% weaker during the US session, hovering below 112.40.
US bond yields plummeted again on Thursday, which dragged the USDJPY lower with them. The 10-year yield is now at 2.85% and the 30-year trades at around 3.12%. Moreover, the short-term yield curve remains inverted, confirming the risk-off sentiment.
Apart of the bad sentiment investors also paid attention to some macro data, including the ADP employment report for the month of November, which fell short of expectations and slowed to 179,000 from 225,000 in November. It seems that the job growth has peaked in the US.
Moreover, the ISM from the non-manufacturing sector continued to improve and printed 60.7, up from 60.3 previously, while analysts had expected 59.2. Finally, factory orders decline 2.1% month-on-month, well below 0.2% scored previously. The greenback remained near the lows of the day after these numbers.
The USDJPY pair is now testing the 100-day moving average at 112.25 and if broken, bears could push the pair further lower to 111.80, where previous lows are located. On the upside, the first resistance is at 112.65 and afterward at 113.25. The outlook seems bearish as sentiment probably wont improve anytime soon.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.