USD/JPY: Pending Technical Correction After Rapid Growth
Masterforex-V | Apr 04, 2014 05:51AM ET
Wednesday quote USD/JPY pair finished trading confident again ascendant dynamics, which allowed to close the day at 103.87, which was the maximum close since Jan. 23. "Support" bulls "continues to provide a number of factors, but today, April 3, 2014, the market situation may change dramatically". Thus, the steady growth of assets in the Japanese stock market, reducing geopolitical tensions in Eastern Europe and the growth yield of U.S. Treasuries have created all the conditions for selling the yen and buying greenbacks.
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Support for USD/JPY had preliminary data on the state of the labor market in the United States.
For example, yesterday the pair had additional support preliminary data on the state of the labor market in the United States. As the report showed agency ADP, in March, the number of new jobs outside agriculture increased by 191 thousand, which coincided with the forecast of experts. This has led to increased interest in the greenback, which was urgently needed for investors trading in the stock markets, as analysts clarify Forex. As confirmation - yesterday's growth indices DJIA and S & P 500 to new highs, which was only possible by releasing huge dollar supply of "safe havens", one of which is the Japanese Yen.
Today, despite robust growth in the morning a pair of quotes, in the European part of trading can be observed a certain calm, as analysts believe the company's Forex FOREX MMCIS group. This is due not so much with the publication of key ECB interest rates (at 11:45 GMT), but with the performance of the Bank President Mario Draghi. He starts his speech read 14:00 GMT, and many experts believe that his comments may derail the euro, leading to massive purchases of the yen.
On the other hand, most of the major investors may withdraw from the market until Friday, when they become known to the official data on the labor market in the United States. According to the forecast, in March, the number of new jobs outside the agricultural sector could grow by 199 thousand, which may lead to additional market demand for the U.S. dollar. "Otherwise, - allow experts Forex - a couple can begin law-governed technical correction to enable the market to fix the profits".
Also today, pay attention to the output data on the number of initial claims for unemployment insurance in the United States last week. It is expected that the number of applications will not exceed 319 thousand, which is a positive sign for the continued growth of the pair.
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