USD/JPY Forecast: Still ranging around 107.50
|USD/JPY Current Price: 107.54
- US reported a record of over 51,000 new coronavirus cases, Dr. Fauci warned of a “serious situation.”
- Better than expected US employment data fell short of boosting the pair.
- USD/JPY stable around 107.50 amid mounting concerns of a delayed economic comeback.
The USD/JPY pair is finishing Thursday with modest gains a few pips above 107.50, after barely reacting to US employment data and equities movements. The intraday upsurge to a daily high of 107.72, was backed by US Treasury yields heading higher with an upbeat employment report, which also boosted stocks, although the movements were quickly reverted amid coronavirus-related concerns. The virus seems out of control in the US, with the country reporting a record of over 51,000 new cases 24 hours ago. Dr. Fauci, the head of the US National Institute of Allergy and Infectious Diseases, said that the country faces a “serious situation,” as the virus was never under control. This Friday, Japan will publish the June Jibun Bank Services PMI, previously at 26.5.
USD/JPY short-term technical outlook
The USD/JPY pair has spent the day trading around the 38.2% retracement of its June monthly slide at 107.50, neutral in the short-term. The 4-hour chart shows that the pair is struggling with converging 20 and 200 SMA, while the 100 SMA is flat around 107.20, providing immediate support. Technical indicators, in the meantime, are heading marginally lower around their mid-lines, skewing the risk to the downside without confirming another leg south.
Support levels: 107.20 106.95 106.60
Resistance levels: 107.95 108.30 108.65
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