Disappointing US News Turns USD/JPY Bearish

While the US dollar was able to maintain its recent gains against riskier currencies like the EUR and AUD during European trading yesterday, it was not as fortunate vs. the Japanese yen. A disappointing ADP Non-Farm Employment Change figure caused the USD/JPY to drop as low as 78.54 during the afternoon session. Overall, the pair fell more than 35 pips for the day. Against the AUD, the dollar fell some 70 pips during morning trading. That being said, the AUD/USD reversed its upward trend later in the day, and was once again trading around the 0.9740 level by the afternoon session. Today, traders will want to pay close attention to the US Non-Farm Payrolls figure, set to be released at 12:30 GMT. While analysts are predicting that the figure increased over last month's result, traders should be warned that the employment statistic is notoriously difficult to predict. The dollar could see additional losses against the JPY to close out the week if the Non-Farm figure comes in below the forecasted 151K. At the same time, should today's news come in higher than predicted, the dollar could see substantial gains throughout the rest of the day.

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