Wednesday's ADP jobs report showed the US economy added 208,000 private sector jobs in November. The ADP data is the forerunner to today's non-farm payroll report that will be closely followed by analysts and is projected to show 230,000 people were added to the US's workforce in November, while the jobless rate is seen to remain unchanged at 5.8%. The recent job gains have not lifted wages by much, stifling the potential for the US economy to expand at a more rapid pace. Average hourly pay climbed 3 cents in October to $24.57, 2% above the average wage 12 months earlier and barely ahead of a 1.7% inflation rate.
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 non-farm payrolls released today
Today is all about US data, with the headliner US non-farm employment changes that is consider as one of the most important releases through month, if not the most important. Of course with the importance comes volatility, thus in case of any surprise out of US high volatility levels are expected. Meanwhile, US trade balance and unemployment rate will be released as well.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 119/120 mark and for the time being it is supported by the support line and weekly R2 near the 120 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 weekly PP at 118.23.Daily chart
Even though the US Dollar has outperformed the Yen for a while now, it still remains the stronger currency out of two. Interestingly the pair continues to set new this year's high every day of the week; moreover, most likely this day will not be any different and new high will be set. Nonetheless, the Greenback will face more substantial resistance around the 121 level, where the weekly R3 and monthly R1 is located.
Hourly chart