The Japanese Yen began retreating today, with the USD/JPY above 99. It comes ahead of the ADP Non-Farm Employment Change and of the ISM Non-Manufacturing PMI – two major US figures that will shake the markets.
USD/JPY crossed the 99 mark, and is now trading at 99.33. The break of 98.70 resistance line came in the late hours of the morning, ahead of the release of the two major figures.Â
Bigger oves in the Japanese Yen can be seen in the crosses: GBP/JPY made a move of 1.22% at teh time of writing, and trades just below the round number of 140. EUR/JPY is trading at 124.60, also a sharp move upwards.
Also note the once famous NZD/JPY, the former king of carry trades, with the highest yielding spread in the west. Also this cross is now moving upwards, flirting with the round 0.5000 mark.
The upcoming data from the US could send USD/JPY above the magical 100, and add another digit to this pair. If such a move doesn’t happen today, I’ll still stick with my early predictions, that USD/JPY and EUR/USD breakouts will happen between Thursday to Friday.
Follow the price action between now (13:00 GMT) and 18:00 GMT. Recently, big moves came an hour or two after the economic indicators’ releases.
