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USD/JPY extends advances and tests 101.80 area; be aware

FXStreet (San Francisco) - The US dollar is posting further gains against the Japanese yen as the pair is joining a pro-USD environment amid stronger than expected ADP data and renewal buying interest above the 200-day MA around 101.60.

The USD/JPY rose 35 pips post data from 101.40 to test the 101.80 area; currently, USD/JPY is trading at 101.77, up 0.24% on the day, having posted a daily high at 101.80 and low at 101.41. The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish.

USD/JPY sentiment

"10 year notes are holding above 2.60%, up nearly 4 bp on the day, in response to the ADP report," points out Jamie Coleman from FXBeat. "USD/JPY has moved above the 10 and 200-day moving averages and is approaching stops at 101.80."

"USD/JPY continues to rebound in the wake of very firm employment data from ADP, the largest US payrolls processor," Coleman adds. He warns market that "buy stops are seen at the 101.80 level."

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