The USDJPY is unmoved as the ADP Employment Change came in at 125K, which was what the market was expecting. The USDJPY is currently trading at 108.83, and remains locked in the range identified in yesterday’s review of this pair.
The USDJPY will now look to the US Advance GDP report for further direction, before the FOMC rate decision and statement in the evening. The markets are expecting a reading of 1.6%, with the previous reading coming in at 2.0%. This gives a deviation of 0.4%, so we would expect a move in the USDJPY to the upside if the US Advance GDP comes in at 2.0% or higher. If the reading is 1.6% or lower, this would be USDJPY negative.
The range to beat extends from the 50% Fibonacci retracement level of 108.40 as the floor, and 109.36 (August 1 high and 61.8% retracement. as the ceiling (red line).Download our latest quarterly market outlookfor our longer-term trade ideas.
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