USD/JPY Current price: 108.46
- The dollar is the strongest as the coronavirus pandemic continues to lead the way.
- The US is expected to have lost 100,000 jobs during March.
- USD/JPY technically bullish, 109.26 at sight, should the greenback extends its advance.
The American dollar strengthens across the board ahead of the release of the US Nonfarm Payroll report, the first to include some data post-crisis. The USD/JPY pair trades around 108.45, turning positive for the week, despite risk aversion persists. After enjoying some demand on Thursday, equities are out of the market’s favour, with most Asian and European indexes in the red. US Treasury yields, in the meantime, remain flat near lows.
Japan released the March Jibun Bank Services PMI, which resulted at 33.8, better than the 32.7 expected from 46.8 in February. Investors are now waiting for US employment data. The US is expected to have lost 100,000 jobs in the month, while the unemployment rate is seen at 3.8% from 3.5% in February. As of wages, Average Hourly Earnings are seen up by 0.2% MoM and by 3.0% YoY. Given thatthe data is usually compiled mid-month, it won’t fully reflect the full impact of the coronavirus pandemic on the labour sector.
USD/JPY short-term technical outlook
The USD/JPY pair is neutral-to-bullish in the short-term, as, in the 4-hour chart, its advancing above the 38.2% retracement of its latest daily advance, now above a mild-bullish 20 SMA. Technical indicators in the mentioned time-frame are advancing above their midlines, although their bullish potential is limited.
Support levels: 108.10 107.70 107.25
Resistance levels: 108.75 109.20 109.60
View Live Chart for the USD/JPY
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