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."
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.