USD/JPY flirting with daily lows, around 107.00 mark post-US weekly jobless claims

USD/JPY lacked any firm directional bias and held near two-week lows.
Improving risk sentiment, a modest USD uptick extended some support.
The US jobless claims jumped to 6.648 million but did little to influence.

Haresh Menghani FXStreet

The USD/JPY pair edged lower during the early North-American session and moved to the lower end of its daily trading range post-US macro data.

A combination of diverging forces failed to provide any meaningful impetus and led to a subdued/range-bound price action through the major part of Thursday trading action.

A modest recovery in the global risk sentiment undermined the Japanese yen's perceived safe-haven demand and helped the pair to hold its neck above the 107.00 round-figure mark.

This coupled with a modest pickup in the US dollar demand extended some additional support, albeit a steep decline in the US Treasury bond yields capped any meaningful gains.

Meanwhile, the greenback lost some traction, albeit lacked any strong follow-through after the US initial weekly jobless claims surged to 6648K as against a rise to 3500K estimates.

Given that a big jump in the number of people claiming unemployment-related benefits was largely priced in amid the coronavirus crisis, the data failed to provide any meaningful impetus.

Hence, it will be prudent to wait for some strong follow-through selling, possibly a sustained weakness below the 107.00 mark, before positioning for any further depreciating move.

Technical levels to watch

USD/JPY

Overview
Today last price	107.26
Today Daily Change	0.10
Today Daily Change %	0.09
Today daily open	107.16

Trends
Daily SMA20	107.69
Daily SMA50	108.81
Daily SMA100	108.98
Daily SMA200	108.33

Levels
Previous Daily High	107.94
Previous Daily Low	106.92
Previous Weekly High	111.72
Previous Weekly Low	107.76
Previous Monthly High	111.72
Previous Monthly Low	101.18
Daily Fibonacci 38.2%	107.31
Daily Fibonacci 61.8%	107.55
Daily Pivot Point S1	106.74
Daily Pivot Point S2	106.32
Daily Pivot Point S3	105.72
Daily Pivot Point R1	107.76
Daily Pivot Point R2	108.36
Daily Pivot Point R3	108.79

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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