The next policy meeting of the FOMC is scheduled on 16-17 December, and officials are seen to retain their "considerable time" pledge, having maintained the rate commitment in place since their March meeting. Fed officials in October ended the central bank's five-year asset-buying programme, a vote of confidence in the nation's economy that has been creating jobs at a steady pace for months. However, they also pledged to keep short-term interest rates near zero for a "considerable time," a nod to subdued inflation and slowdown abroad.
Japan's manufacturing sector continued to expand, albeit at a slower pace, pointing to a modest recovery
after the nation's economy unexpectedly fell into recession. The final Markit/JMMA Manufacturing PMI came in
at 52.0 in November, compared with a preliminary reading of 52.1 and down from a final 52.4 last month.
Nevertheless, the indicator remained above the 50-mark threshold, which indicates expansion in the
sector.
US ADP non-farm employment change on Wednesday
Today US ADP non-farm employment change data will be released and that will give as an insight about what to wait on Friday, when the government will release the official data, which is considered to be one of the most important monthly data if not the most important. Meanwhile, there are no substantial news to be released in Japan.USD/JPY continues to trade around this year's highs
At the first half of the year USD/JPY was trading almost completely flat, as it traded around the 102 level. However, at the second part of August the Greenback started to outperform the Japanese peer rather heavily. Currently, the pair has reached the 118/119 mark and for the time being it is supported by the support line and weekly PP around the 118 mark, if this level holds then we might see the pair climbing even higher. Nonetheless, in case these levels do not hold the selling pressure then the pair is likely to slide towards the monthly PP at 116.75.Daily chart
USD/JPY has managed to surpass the 119 level that remained unbeaten beforehand. Currently, the pair is hovering around the weekly R1 that is located at 119.23, if this level continues to hold the pair above the major level at 119 we might see a test of the 120 level. Nonetheless, most likely the pair will have to gain more bullish momentum to breach the psychological level and possibly even to touch it.
Hourly chart