USDJPY – Down
Event to pay attention to today:
15:15 EET. USD – ADP Non-Farm Employment Change
17:00 EET. USD – ISM Services PMI
USDJPY:
Rising expectations of a BOJ rate hike in December and safe-haven flows may help limit yen losses.
Investors await the release of the Jibun Bank Services PMI, U.S. economic data and Powell’s speech on Wednesday.
The Japanese yen (JPY) is trading in negative territory on Wednesday. Good US manufacturing PMI and job openings data this week indicated that the US economy remains resilient, which boosted the dollar. However, traders are increasingly confident that the Bank of Japan (BOJ) may raise interest rates this month. This, in turn, could support the yen in the near term.
In addition, ongoing political uncertainty in France, political tensions in South Korea and escalating geopolitical risks in the Middle East could strengthen safe-haven flows, which would favor the yen against the US dollar. Investors will be keeping an eye on the final reading of Japan’s Jibun Bank Services PMI, which will be released later on Wednesday. In the US, the ADP employment change report, the final S&P Global services PMI, the ISM services PMI and the Fed’s Beige Book will be released. Later in the day, Federal Reserve (Fed) Chairman Jerome Powell is scheduled to speak.
Trade recommendation: Watch the level of 150.20, when fixing below consider Sell positions, when rebounding consider Buy positions.
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