Dollar saw a week of incredible advance and testing of the ¥125 level, dollar eased early on Tuesday, albeit still watching closely resistance level.
Monday experienced another rally on US manufacturing data, leading the dollar even higher (at the highest level since 2002), although halted for a short time before on poor personal spending report.
Tuesday will see only minor-relevance factory orders, which should not undermine the already strong sentiment, neverthelessfrom Wednesday we will see another serie of popular labor market reports.
On Wednesday it starts with the ADP employment change for the month of April, followed by weekly change in unemployment claims and finished on Friday with the most popular non-farm payrolls, showing change in employees during April.
Although the Federal Open Market Committee accepted the fact that rate-hike could come only on September if not later, data still play key role to show the strength of US economy and thus having direct impact on the dollar.
From the fundamental point of view, we will see if this serie of data from April is about to change the dollar trend and halt its upward trend against the yen.
From the technical point of view, we can see resistance level at ¥124.862, while next stronger level could be seen even at ¥127.
In case of negative sentiment, spurred by worse-than expected labor data, we may expect bears to push dollar to the next support level at ¥123.619 or later to ¥122.875.
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