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.
How to Trade today’s ADP Employment Change Data?
- Buying the USD/JPY call options may be a good strategy if the ADP employment change date comes better than forecast.
- Alternatively, buying the USD/JPY put options may also be a good strategy if the ADP employment change data misses the average projections of economists.
As of this writing, the pair is being traded around 110.63. The pair is expected to face a hurdle near 110.76, an immediate trendline resistance area ahead of 111.00, the psychological number and then 111.15, another trendline resistance as demonstrated with red color 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.
How USD/JPY Reacted to Past ADP Employment Change Releases?
USD/JPY rallied by more than 50 pips after the release of ADP Employment Change data on 8th March 2017. The employment report showed 298k news jobs as compared to 190k news jobs in the month before.
Similarly, the pair rose by more than 30 pips after the release of February’s ADP employment change data. The report showed 246k news job as compared to 165k new jobs in the month before.