FxWirePro: USD/JPY snaps 5-day uptrend, caution prevails ahead of US ADP and FOMC minutes

Chart - Courtesy Trading View 

USD/JPY was trading 0.07% lower on the day at 116.05 at around 05:05 GMT. The pair is extending some weakness after hitting new 6-year highs above 116 handle. 

Major technical bias remains bullish. Next major bull target on resumption of upside lies at 88.6% Fib at 116.66.

The major has paused a 5-day uptrend as caution prevails ahead of US ADP and FOMC minutes.

Private payrolls according to Automatic Data Processing (ADP) are forecast to have added 413,000 jobs, the lowest since 310,000 in August, after averaging 543,000 in September, October and November. 

The anticipated easing in the ADP may help keep the investors hawkish but readiness for a faster rate hike in 2022 by the Fed policymakers. FOMC Minutes will be in focus for cues.

Major Support Levels: 

S1: 115.51 (5-DMA)

S2: 115

S3: 114.65 (21-EMA)

Major Resistance Levels: 

R1: 116.66 (88.6% Fib)

R2: 117

R3: 118 

Summary: USD/JPY trades with a bullish bias. Scope for test of 88.6% Fib at 116.66