USD/JPY Forecast: Waiting for clearer clues
|USD/JPY Current price: 108.75
- Equities advance following US Senator Bernie Sanders’ decision to get off the presidential race.
- Attention shifts to the US employment situation, weekly unemployment claims foreseen up by millions.
- USD/JPY neutral in the short-term, bears to take over on a break below 108.25.
There’s little action across the FX board this Thursday, with majors ranging within familiar levels. The USD/JPY pair continues to trade just below the 109.00 mark, although holding on to weekly gains. The greenback remains generally weak, as investors still favour high-yielding equities. Wall Street surged after US Senator Bernie Sanders get off the presidential race, clearing the path for his rival, Joe Biden. The positive momentum backed a recovery in Asian and European equities, although such movement was not reflected in currencies’ trading.
BOJ’s Governor Kuroda was on the wires during the Asian session, remarking the economic uncertainty related to the ongoing coronavirus crisis. As expected, he added that policymakers won’t hesitate to add easing if necessary. The US will publish today initial jobless claims for the week ended March 27, expected once again in the millions.
Meanwhile, the pandemic continues to expand. Some modest positive news are being overshadowed by those coming from the US as it reported almost 2,000 deaths for a second consecutive day. The number of cases in the country is above 432K. Italy seems to have reached its peak, but the illness continues to escalate in the rest of Europe. The end of the economic stalemate is still far.
USD/JPY short-term technical outlook
The USD/JPY pair is holding ground, with a short-term neutral stance. In the 4-hour chart, the pair is just below converging 20 and 100 SMA, while the Momentum indicator flat at around its 100 level. The RSI eases, but also stands around its mid-line. The main resistance is 109.38 the weekly high, while the downside will remain limited as long as the price holds above 108.25.
Support levels: 108.25 107.90 107.50
Resistance levels: 109.00 109.40 109.80
View Live Chart for the USD/JPY
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