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USD/JPY is trading on the bid in the Tokyo open after a mixed start, with equities opening lower as investors are in anticipation of Nonfarm Payrolls tonight. The ADP report showed a positive result and supports a decent release in tonight jobs data in the region of 200k. The FOMC will be looking to all data of late, and not all has been positive, including today's ISM release in manufacturing that points to a contraction in months ahead.
The Yen has garnered some demand on the back of recent commentary from the BoJ, in respect of the forthcoming meeting this month, when it was said that there may not be any need for further easing, despite the recent Tankan survey, that, although it was overall better than feared, it still signalled some deterioration in the outlook for business confidence and downward pressure on output prices.
USD/JPY technical outlook
Karen Jones, chief analyst at Commerzbank explained that USD/JPY has seen a rebound from the base of the range. "The Elliott wave count is suggesting that the failure circa 121.25/35 was the end of wave ‘4' and attention remains on the 6 week uptrend at 119.32. Below here will target the 118.33 March low enroute to the 116.15/115.85 2015 low and the recent low."
The Yen has garnered some demand on the back of recent commentary from the BoJ, in respect of the forthcoming meeting this month, when it was said that there may not be any need for further easing, despite the recent Tankan survey, that, although it was overall better than feared, it still signalled some deterioration in the outlook for business confidence and downward pressure on output prices.
USD/JPY technical outlook
Karen Jones, chief analyst at Commerzbank explained that USD/JPY has seen a rebound from the base of the range. "The Elliott wave count is suggesting that the failure circa 121.25/35 was the end of wave ‘4' and attention remains on the 6 week uptrend at 119.32. Below here will target the 118.33 March low enroute to the 116.15/115.85 2015 low and the recent low."
