• USD/JPY fell on Wednesday as demand for safe-haven assets rose following the U.S. government shutdown and weak U.S. labor data, fueling expectations of Fed rate cuts.
•The U.S. government shut down major operations as partisan deadlock blocked a funding deal, risking thousands of federal jobs.
• The shutdown may postpone key economic data releases, including Friday’s non-farm payrolls report.
• The JOLTS report on Tuesday showed slight growth in U.S. job openings in August but a drop in hiring, leading traders to price in a 25-basis-point rate cut this month and another in December.
• The ADP National Employment Report, expected later today, should provide further insight into the labor market.
• Immediate resistance is located at 147.85(SMA 20), any close above will push the pair towards 148.70(50%fib).
• Support is seen at 146.65 (61.8%fib) and break below could take the pair towards 145.97 (Lower BB)
Recommendation: Good to sell around 147.60, with stop loss of 148.50 and target price of 147.00


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