USD/JPY turns positive for the day after US data, holds firm above 131.00
|- USD Dollar gains momentum ahead of Wall Street opening bell.
- US Jobless Claims dropped more than expected.
- USD/JPY is up more than a hundred pips from the monthly low it reached earlier on Thursday.
The USD/JPY extended the rebound following the release of US economic data and printed a fresh daily high at 131.65. On Asian hours, the pair bottomed at 130.39, the lowest since February 10.
Data helps DXY’s rebound
The US Dollar was attempting to stabilize and following the release of US data it gained some momentum, helping the greenback. The DXY is down by just 0.10%, near 102.50, after hitting earlier levels below 102.00.
Initial Jobless Claims dropped by 1,000 during the week of March 18 to 191,000, against expectations of an increase to 201,000. Continuing Claims dropped by 14,000 in the week ended March 11 to 1,694,000. The numbers show the labor market remains tight.
The Chicago Fed National Activity Index (CFNAI) came in at –0.19 in February, down from 0.23 in January; forecasts were for 0.
USD/JPY rebounds
US yields printed fresh highs after the latest economic reports, although they are significantly below yesterday’s levels. The yield on the US 10-year bond rose above 3.50% while the 2-year approached 4%. The Japanese Yen was modestly impacted by the rebound in yield.
USD/JPY is hovering around 131.50, in positive ground for the day, after bouncing from monthly lows. The pair is attempting to remain above the critical support of 130.50. The bias is still to the downside.
Technical levels
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.