USD/JPY stalls recovery move ahead of 111.50 level
|The USD/JPY pair quickly eroded around 20-pips and dropped to 111.20 level following the release of weekly jobless claims data from the US.
According to the data released just a while ago, the number of individuals who filed for unemployment related benefits rose more-than-expected to 241K during the week ended June 16. The reading was slightly above 240K expected and previous week's 237K, but remained closer to multi-decade lows and hence, did little to dent sentiment around the US Dollar. However, a fresh leg of slide in the US Treasury bond yields failed to provide any additional support and kept a lid on the pair's recovery momentum.
Even a goodish recovery in equity markets, pointing to improving investors' risk appetite and which tends to weigh on the Japanese Yen's safe-haven appeal, also did little to lift the pair back into positive territory.
• USD/JPY: Neutral view for another week - Westpac
Currently trading near 111.25 region, the pair held in negative territory for the third consecutive day as investors now look forward to the Federal Reserve Governor Jerome Powell's testimony before the US Senate Committee on Banking for some fresh clues over the central bank's near-term monetary policy outlook, which might eventually provide some fresh impetus for the pair's movement through NY trading session.
• US: Fed Governor Powell’s speech in focus - BBH
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet writes: "Technically, the 4 hours chart shows that the price stands a few pips below a modestly bearish 200 SMA, while a horizontal 100 SMA converges with the 61.8% retracement of the mentioned rally at 110.50 providing a strong support. Indicators in the same chart are flat around their mid-lines, reflecting the ongoing absence of directional strength. Only an upward acceleration beyond 112.00 could put the pair in the bullish track, something unlikely unless yields pick up."
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