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US dollar reaches 2-week highs versus yen after strong ADP, Lockhart comments

FXStreet (Córdoba) - USD/JPY extended gains to fresh 2-week highs as the dollar strengthened following hawkish comments from Fed’s Lockhart and a better-than-expected ADP report.

Automatic Data Processing (ADP) reported US private sector added 217,000 new jobs in November, beating estimations of 190,000. Meanwhile, October’s job gain was upwardly revised to 196,000 from 182,000 previously reported.

While strong ADP supports expectations of a strong NFP report, Fed Lockhart commented that the case for a lift-off is “compelling”, unless there is a dramatic shift in data.

USD/JPY broke above the 123.20 zone and climbed to a high of 123.35, last seen Nov 19. At time of writing, the pair was trading at 123.29, recording a 0.37% gain on Wednesday.

USD/JPY levels to watch

In terms of technical levels, next resistances are seen at 123.74 (Nov 18 high), 124.15 (Aug 20 high) and 124.45 (Aug 19 high). On the flip side, supports could be faced at 122.82 (21-day SMA), 122.67/63 (Nov 30, Dec 1 lows), 122.20 (Nov 16 low) and then 121.76 (100-day SMA).

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