Forex - USD/JPY breaches 82.92 level after U.S. ADP payrolls drop

Published 10/06/2010, 08:40 AM
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Investing.com – The U.S. dollar extended losses against the yen on Wednesday, breaching the 82.92 level which triggered Japan’s September 15 intervention in currency markets, after worse-than-expected U.S. ADP non-farm payrolls data.

USD/JPY hit 82.75, the pair’s lowest since May 31 1995; the pair subsequently consolidated at 83.01, shedding 0.23%.

The pair was likely to find support at 81.77, the low of May 29 1995 and resistance at 83.57, the high of October 1.

Earlier in the day, industry data showed that U.S. non-farm payrolls fell unexpectedly in September. Payroll processing firm ADP said non-farm private employment declined by a seasonally adjusted 39K in September, after rising by a revised 10K in August.

Analysts had expected non-farm private sector employment to increase by 18K in September.

The report said that the decline in private employment in September “confirms a pause in the economic recovery already evident in other data”.

The yen was also up against the euro, with EUR/JPY shedding 0.13% to hit 115.02.

Although Japanese Finance Minister Yoshihiko Noda has repeatedly said Japan will act when necessary, on Friday he will be forced to explain to G-7 counterparts his country’s reasons for carrying out foreign-exchange intervention at the group’s summit meeting in Washington.

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