The new youThe ADP jobs report came in extremely hot at 497K versus 228K estimate. Initial jobs claims were still fairly strong, and continuing claims continue to ticked lower (also stronger). Yields moved sharply higher. Stocks are lower. The dollar has moved higher including the USDJPY.
Looking at the hourly chart, the USDJPY with more of a bearish tilt. The price moved below the 200-hour moving average (currently at 144.26) in the Asian session, and continued down to a low of 143.54. The corrective move higher in the London session came up to test the swing area between 144.12 and 144.22. Sellers leaned and the price moved lower.
However, the ADP employment report sent the price back toward the 200-hour moving average (green line) and the 100 hour moving average (blue line) at 144.26 and 144.44 respectively. The price of the USDJPY reached between those levels at 144.34 before stalling.
What now?
There is some stall between the moving averages. If the buyers are to take more control they need to get above each of those moving average targets. Absent that and the sellers are actually still in the game despite the bullish US dollar fundamental news.
This article was written by Greg Michalowski at www.forexlive.com. Source