FXStreet (Mumbai) – The USD/JPY pair rose above 124.00 levels in the early European session on Wednesday as the European desks seem to prefer holding dollars ahead of the monthly ADP employment report in the US.
USD/JPY: Supported at 124.70
The pair has repeatedly ran into fresh bids in the band of 123.70-123.80 since the US session yesterday. A contraction in the US factory orders data released on Tuesday had pushed the pair lower to 123.74 levels. However, the strength in the USD in the early European session pushed the pair back above 124.00 levels.
Ahead in the day, the pair could take cues from the US ADP monthly employment report and US ISM non-manufacturing data. The rout in the bond markets and the resulting rise in the treasury yields is being ignored by the currency pair.
USD/JPY Technical Levels
The immediate resistance is seen at 124.34 (hourly 50-MA), above which the pair could rise to 124.81 levels. On the flip side, a break below 124.00 could see the pair re-test 123.70-123.60 levels.
(Market News Provided by FXstreet)