USD/JPY drops for the fourth consecutive day, find support above 114.10

• DXY falls for the third consecutive day, hits lowest since January 24.
• Employment data from the US came sharply below expectations.
• USD/JPY finds support above 114.00, holds negative bias.

The USD/JPY is falling on Wednesday for the fourth consecutive day. It bottomed at 114.14 after the release of the US ADP employment report. During the American session, it has been trading in range between 114.20 and 114.45, consolidating daily losses.

The decline of USD/JPY takes place as the DXY continues to correct lower and while US yields remain rangebound. The Index is falling 0.23%; it bottomed at 95.82, the weakest in almost two weeks before bouncing back above 96.00. The 10-year stands at 1.77%, down 1.05% for the day.

The yen is posting mixed results across the board. The improvement in risk sentiment weighs on the Japanese currency. The worse-than-expected economic numbers from the US did not push the yen sharply higher. The ADP employment report showed a decline in private payrolls of 301K, against expectations of a 200K increase. Attention now turns to Friday’s NFP.

Strong barrier ahead

The negative bias in USD/JPY remains in place. The yen appears to have reached a strong barrier above 114.00/10. A break under the area should clear the way for a test of 113.45 (January low).

On the upside, the immediate resistance is seen at 114.45 followed by 114.60 and then 114.95. A daily close back above 115.00 would alleviate the bearish pressure.

Technical levels