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USD/JPY – Yen Slips to 7-Year Lows on Excellent ADP Nonfarm Payrolls

The Japanese yen continues to slide on Wednesday, having lost over 100 points on the day. After a pause on Tuesday, USD/JPY is back to its winning ways, and is trading in the mid-114 range. In Japan, Average Cash Earnings dipped to 0.8%. BoJ Governor Haruhiko Kuroda spoke at an event in Tokyo. Later in the day, the BoJ will release the minutes of last week’s policy meeting. ADP Nonfarm Employment Change climbed to 230 thousand, well above expectations.

US job numbers have been solid in recent readings, and the trend continued with ADP Nonfarm Payrolls on Wednesday. The key indicator climbed to 230 thousand, easily beating the estimate of 214 thousand. This marked the indicator’s strongest showing in 2014. We’ll get a look at Unemployment Claims and the official Nonfarm Payrolls later in the week.

The yen took a tumble last week after the BoJ surprised the markets by increasing monetary stimulus. The BoJ increased the monetary base from JPY 60-70 trillion to 80 trillion per year. The Japanese central bank said that the move was needed to increase inflation, which remains short of the central bank’s target of 2%. The Japanese yen continues to trade at 7-year lows against the strong US dollar and could lose more ground.

USD/JPY for Wednesday, November 5, 2014

USD/JPY November 5 at 15:30 GMT

USD/JPY 114.56 H: 114.84 L: 113.47

 

USD/JPY Technical

S3 S2 S1 R1 R2 R3
110.68 112.94 113.68 114.65 115.75 116.66

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

USD/JPY ratio is pointing to gains in long positions on Wednesday. This is consistent with the pair’s movement, as the yen continues to post sharp losses. The ratio currently has a majority of long positions, indicative of trader bias towards USD/JPY continuing to move upwards.

 

USD/JPY Fundamentals

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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