USD/JPY: Slowly but steadily heading south
|USD/JPY is bearish as a critical resistance level at 106.90 should cap advances ahead of the US Nonfarm Payroll report, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“Japan released overnight Labor Cash Earnings for March, which increased by 0.1%, missing the market’s expectations. Overall Household Spending in the same period decreased by 6.0%. Also, the Jibun Bank Services PMI plunged to 21.5 in April after printing 33.8 in March.”
“The US is expected to have lost 22 million jobs in April, while the unemployment rate is foreseen at 14%.”
“A daily descendant trend line is coming from April’s high at 109.37 stands today at around 106.90, a critical resistance that the pair needs to surpass to lose its bearish tone.”
“The 4-hour chart shows that the risk remains skewed to the downside, as the pair is unable to advance beyond a bearish 20 SMA, while the larger ones gain downward strength above it.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.