The USDJPY comes off ADP price highs after trade deficit
Back below the 100 hour MA
The USDJPY moved higher on the stronger than expected ADP report. Gains in jobs were broad based and gave the market something to cheer about.
Not so good was the trade report with carved out a larger than expected deficit. That is a negative for GDP and also reminds the market of the tariff/trade bias out of Washington (although Commerce Secretary did indicate there can be a carve out with contingencies of course). Let's say a larger deficit will probably not quiet down the tariff rhetoric.
Technically, the ADP news send the price of the USDJPY back up to test the 100 hour MA at 105.934. The high reached 105.98 before coming back down. We currently trade at 105.82. I would expect sellers near the MA level on tests.
A lower trend line comes in at 105.49 on a move back to the downside. The low for the day reached 105.45. The low last Friday reached 105.243.
Yesterday the corrective high reached up to the 50% of the move down from the February 27th high at 106.457. That hold at the midpoint, did give the buyers and sellers something to fight about. The Cohn headline in the first hour of the day decided that fight as the price immediately tumbled lower.