USD/JPY Current price: 107.42
- Risk-off paused, but the pandemic-related crisis remains the same.
- US employment data in focus as the weekly unemployment claims expected to skyrocket.
- USD/JPY upside contained by a critical Fibonacci resistance at 107.70.
The USD/JPY pair trades at the lower end of its weekly range, having traded as low as 106.91 this Thursday, amid the dismal market mood that reigned on Wednesday. The pair later recovered amid the better performance of equities, indicating a pause in risk-off. The advance, however, stalled at 107.56, with USD/JPY now trading around 107.40. Weighing on the pair, US Treasury yields are falling, with the yield on the benchmark 10-year note at 0.59%.
The focus now shifts to US employment data. The country will release unemployment claims for the week ended March 27, and the number is once again expected to break stats. After printing at 3.28M in the previous week, the market foresees 3.5M for this week. Indeed, several states have changed the rules about claiming for unemployment insurance, allowing those in lockdown to claim for help. And while the numbers may be distorted by the ongoing crisis, the fact is that the spending related to unemployment is out of charts.
USD/JPY short-term technical outlook
The USD/JPY pair is trading below the 38.2% retracement of its latest bullish run at 107.70, the immediate resistance. In the 4-hour chart, it is developing below all of its moving averages, which anyway lack directional strength. Technical indicators, in the meantime, remain within negative levels, although without clear direction. Overall, the risk is skewed to the downside, although there’s no technical confirmation just yet.
Support levels: 107.10 106.80 106.35
Resistance levels: 107.70 108.00 108.35
View Live Chart for the USD/JPY
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD struggles to hold above 1.2500
GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.
Gold slumps below $2,300 as US yields rebound
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.