USD/JPY not much further to go

FXstreet.com (London) - USD/JPY is approaching levels in the 101 handle that might offer further support depending o tomorrows data outcomes.

On the charts, USD/JPY has strong support to break through, established in September from 101.50 and 100.80.Meanwhile, ADP employment survey’s came in stronger from the US that has heightened investor expectations that the Fed may begin to taper QE earlier at the 17th-18th December or 28th-29th January FOMC meetings. Lee Hardman at The Bank of Tokyo-Mitsubishi UFJ said “The survey highlights that the labour market has remained surprisingly resilient to the government shutdown and debt ceiling uncertainty. The release of the Fed’s Beige Book overnight also revealed that “hiring showed a modest increase or was unchanged across the country””.

USD/JPY Levels

The 20 DMA is 100.78, the 50 DMA is 99.11 and the 200 DMA is 98.45. RSI (14) reads 68.41. Supports are ascending from 101.14 and 101.43. Spot is 101.75 and resistance is 101.82, 102.03, 102.45, 102.71, 102.84 and 103.03.

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