September 05, 2024 14:43 GMT
FOREX: USDJPY Bounce Highlights Ongoing Sensitivity to US Data
FOREX
- The all-around solid ISM services report has helped USDJPY extend its intra-day recovery, rising around 80 pips to a fresh session high above 144.00. Employment missed expectations slightly but importantly held onto most of July’s improvement, whilst prices paid and new orders both beat and were at their highest since May.
- The data should clean up short-term positioning heading into tomorrow’s employment report and highlights the clear two-sided risks for the pair as market pricing remains torn between the Fed cutting by 25 or 50bps on Sep 18.
- Short-term parameters appear well defined ahead of the event. On the downside, 142.85 and 141.70 provide support, while stronger US labour market dynamics should bolster the recovery towards the 20-day EMA at 146.20 and the week’s high at 147.21.
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