Investing.com – The U.S. dollar extended early gains against the yen on Wednesday, soaring to a 4-day high following the release of better-than-expected U.S. economic data and ahead of a critical announcement by the Federal Reserve.
USD/JPY hit 81.50 during European afternoon trade, the pair’s highest since October 28; the pair subsequently consolidated at 81.34, surging 0.89%.
The pair was likely to find support at 80.23, Monday’s low and a 15-year low and resistance at 81.77, the high of October 28.
Earlier in the day, the U.S. Institute of Supply Management said its non-manufacturing purchasing manager's index rose for the tenth consecutive month in October, climbing to 54.3 after rising to 53.2 in September. Analysts had expected the index to rise to 53.6 in October.
Meanwhile, in a separate report U.S. payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 43K in October, after falling by a revised 2K in September. Analysts had expected non-farm private sector employment to increase by 25K in October.
The better-than-expected ADP data could result in some upward revisions to expectations for Friday's U.S. non-farm payrolls report.
The yen was also down against the euro, with EUR/JPY soaring 0.86% to hit 114.12.
Later Wednesday, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.
USD/JPY hit 81.50 during European afternoon trade, the pair’s highest since October 28; the pair subsequently consolidated at 81.34, surging 0.89%.
The pair was likely to find support at 80.23, Monday’s low and a 15-year low and resistance at 81.77, the high of October 28.
Earlier in the day, the U.S. Institute of Supply Management said its non-manufacturing purchasing manager's index rose for the tenth consecutive month in October, climbing to 54.3 after rising to 53.2 in September. Analysts had expected the index to rise to 53.6 in October.
Meanwhile, in a separate report U.S. payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 43K in October, after falling by a revised 2K in September. Analysts had expected non-farm private sector employment to increase by 25K in October.
The better-than-expected ADP data could result in some upward revisions to expectations for Friday's U.S. non-farm payrolls report.
The yen was also down against the euro, with EUR/JPY soaring 0.86% to hit 114.12.
Later Wednesday, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.