USD/JPY – Yen Steady in Light Holiday Trade

The US dollar has posted slight gains on Wednesday, as USD/JPY trades close to the 120 line. In the US, there are no major releases on the schedule, There are no Japanese events on Wednesday, as Japanese markets are closed for a holiday.

Japanese manufacturing data was a disappointment, as Tertiary Industry Activity came in at -0.3%, well below the forecast of 0.1%. M2 Money Stock posted a gain of 3.4%, shy of the estimate of 3.6%. Earlier in the week, Current Account improved to JPY 0.98 trillion, beating the forecast of JPY 0.95 trillion.

US employment numbers continue to impress, as JOLTS Jobs Openings climbed to 5.05 million, matching expectations. This was the indicator’s highest level since 2001, and points to more available jobs due to an increase in demand for goods and services. The strong reading follows a solid US Nonfarm Payrolls report for January, which was released on Friday. The key employment indicator improved to 257 thousand in January, up from 252 thousand a month earlier. This easily beat the estimate of 236 thousand. The Federal Reserve has been clear that the employment numbers will have to be strong before a rate hike kicks in, so these strong employment releases reinforce expectations for an interest rate in mid-2015, which would be a major boost for the US dollar.

USD/JPY for Wednesday, February 11, 2015

USD/JPY February 11 at 11:20 GMT

USD/JPY 119.92 H: 119.90 L: 119.29

USD/JPY Technical

• USD/JPY showed slight gains in the Asian session. The pair has edged higher in the European session, breaking above resistance at 119.83.
• 119.83 has switched to a support role and is a weak line. 118.69 is stronger.
• 120.63 is an immediate resistance line.
• Current range: 119.83 to 120.63

Further levels in both directions:

• Below: 119.83, 118.69, 117.49, 116.69 and 115.56
• Above: 120.63, 121.69, 122.19 and 123.66

OANDA’s Open Positions Ratio

USD/JPY ratio is showing gains in long positions on Wednesday, continuing the direction seen a day earlier. This is consistent with the pair’s movement, as the yen has posted small losses. The ratio has a majority of long positions, indicative of trader bias towards the US dollar moving to higher ground.

USD/JPY Fundamentals

• 15:30 US Crude Oil Inventories. Estimate 3.7M.
• 18:01 US 10-year Bond Auction.
• 19:00 US Federal Budget Balance. Estimate -2.6B.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.