‘With attention on whether the Fed can conduct three hikes this year, Friday’s jobs data will provide important cues as to whether an inflation-inducing wage increase is taking place.’ – IG Securities (based on Reuters)
Pair’s Outlook
On Tuesday, the USD/JPY pair remained relatively unchanged again, unable to reclaim the 114.00 major level. Even if this mark is overcome, the Buck is still unlikely to appreciate beyond 114.50, as the ascending channel’s resistance line is located there, also bolstered by the 55-day SMA, the monthly R1 and the upper Bollinger band. Technical indicators are also in favour of the positive outcome, but today’s ADP Employment data could turn the tide for the US Dollar, causing it to fall to around 113.30. A flat outcome would also not be a surprise, as the main focus is still on Friday’s NFP data this week.
Traders’ Sentiment
Today 60% of all open positions are long, compared to 61% on Tuesday. At the same time, the number of orders to purchase the Greenback inched up from 54 to 57%.
