USD/JPY & ADP Non-Farm Employment Change: Is a pullback coming soon?
Today at 12:15 GMT will be released the numbers from ADP Non-Farm employment change and markets are looking to price a decline from 177,000 jobs to 166,000 jobs, and this data could give us some hints of what we can expect in the next US NFP release due to this Friday. We should remind that last month's reading was in the line with expectations, so we'll see if this data can bring us a surprise before the Friday's event.
Our technical analysis for USD/JPY at H4 chart is extremely bullish, as the pair managed to gain momentum during Tuesday's session and now, we're expecting to see a breakout above the resistance level of 102.96, in order to extend the rally towards the 103.68 zone. However, as the overall situation in the pair is very overbought, a pullback to the support level of 102.42 in a first degree is highly likely to happen.