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Dec 04 - 12:12 PM
USD/JPY - COMMENT-USD/JPY's ADP Dip Offset By Trump's Retake On Trade
First appeared on eFXplus on Dec 04 - 09:55 AM

Weak ADP data has stanched USD/JPY's rebound triggered by hopes the U.S. and China can reach a trade deal to avert tariff escalation on Dec.
15 Click here , but Trump's latest comment that trade talks are going "very well" nL8N28E40Rmay temper any bearishness.Considering USD/JPY's fall -- along with U.S. stocks and Treasury yields -- after Trump's no-deal rhetoric earlier this week, anything that signals a retreat from that aggressive trade stance should be positive for the currency pair.
And if today's poor 67k ADP rise is indicative of the far more important NFP result on Friday, markets may view Trump as more motivated to reach a trade deal to limit U.S. economic weakness before next year's election -- further positive for USD/JPY.
USD/JPY became deeply oversold overnight after nearing an ABC correction target off the 109.73 peak.
The 108.79 rebound high has been capped by the daily kijun at 108.81 with help from the ADP miss.
A close below 108 targets 106.47-48 nL1N28D0ES, above Tuesday's 109.21 high targets 110.00/50 hurdles.


Chart: Click here

Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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