The dollar holds firm tone against yen and extends recovery rally from strong support at 112.00 zone into third straight day. Fresh bullish acceleration on Friday broke above key barriers at 113.00 zone, consisting of converged 10/55/20SMA’s and Fibo 61.8% of 113.63/112.05 downleg. The greenback maintains strong bullish sentiment, inflated by encouraging Fed’s Dec meeting minutes and Thursday’s release of US ADP private sector jobs data which is seen as an indication for more significant NFP report, due later today. ADP report showed stronger than expected increase of new jobs in private sector in Dec (250K vs 191K f/c), offsetting negative impact from unexpected jump in jobless claims previous week (250K vs 241K f/c). Traders are focusing on US Non-Farm Payrolls data, due later today, to get further information about the strength US jobs sector and fresh signals for the dollar. Forecast for NFP shows 190K new jobs added in December vs 228K in November. Solid numbers (200K and above) would be considered as supportive for the greenback and USDJPY could accelerate towards recent peaks at 113.63 (21 Dec) and 113.74 (12 Dec) which mark pivotal barriers, as repeated strong upside rejections occurred at these levels. Conversely, weaker than expected jobs numbers in December would put the greenback under pressure and risk return into daily cloud (cloud top lies at 112.78 and marks strong support, loss of which will be negative signal.
Res: 113.26, 113.38, 113.63, 113.74
Sup: 113.05, 112.93, 112.78, 112.43
