The US Dollar (USD) inched higher against the Japanese Yen (JPY) on Wednesday, increasing the price of USD/JPY to more than 110.50 ahead of the US ADP Employment Change news. The technical bias remains bullish because of a higher high in the recent upside move.
As of this writing, the pair is being traded around 110.89. The pair is expected to face a hurdle near 111.00, the psychological number ahead of 111.10, an immediate trendline resistance and then 111.23, the confluence of 50% fib level as well as short term horizontal resistance as demonstrated in the given below chart.
On the downside, a support may be seen near 110.56, the lower trendline ahead of 110.26, the low of last major downside move and then 110.00, the psychological number. The technical bias shall remain bullish as long as the 110.00 support area is intact.
The Automatic Data Processing, Inc. is due to release the Employment Change data today during the US trading session. According to the average forecast of different economists, 187k news jobs were added during March as compared to the addition of 298k new jobs. ADP employment change is a measure of the change in the number of employed people in the US. Generally speaking, a rise in this indicator has positive implications for consumer spending, stimulating economic growth. So a high reading is traditionally seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.
Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.