Sasha Singh
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USDJPY : Limited Downside

US dollar posted some losses against Japanese Yen after the release of ADP nonfarm unemployment change data. On a seasonally adjusted basis, Private Sector employment increased by 191000 from February to March which is slightly above the twelve month average giving some sign that more growth could come in future.You can check out the Blog of Fan Yang for more information about the data">here. This data just provide an early look at employment growth ahead of the government released employment data which is considered more important.

On the hourly chart of USDJPY, we can see that the pair was following an uptrend channel and just broke out from the support trend line. The pair found support at 103.63 after the breakout and again surged. The pair may go up to the 103.91 which was previously acting as resistance for the pair. However if it breaks below the 103.63 level it will find support at 23.6 fib level which is at 103.40. As Yen is also under pressure after Japan's sales tax increased to 8% from 5% yesterday, USDJPY may move higher.