USD / JPY Current Price: 108.75
- Actions are progressing following the decision of US Senator Bernie Sanders to leave the presidential race.
- Attention is drawn to the employment situation in the United States, with weekly unemployment claims forecasted in the millions.
- The USD / JPY short-term neutral should take over on a break below 108.25.
There is little action across the effects chart this Thursday, with majors at familiar levels. USD / JPY continues to trade just below the 109.00 mark, although it maintains its weekly gains. The greenback generally remains weak, with investors still favoring high yield stocks. Wall Street jumped after US Senator Bernie Sanders stepped down from the presidential race, paving the way for rival Joe Biden. The positive dynamics supported a recovery in Asian and European equities, although this movement was not reflected in currency exchanges.
BOJ Governor Kuroda was on the wire during the Asian session, highlighting the economic uncertainty linked to the current coronavirus crisis. As expected, he added that policy makers will not hesitate to add flexibility if necessary. The United States will release the first jobless claims for the week ending March 27 today, expected by the millions again.
Meanwhile, the pandemic continues to spread. Some modest positive news is overshadowed by news from the United States, which reported nearly 2,000 deaths for the second consecutive day. The number of cases in the country is over 432K. Italy seems to have reached its peak, but the disease continues to worsen in the rest of Europe. The end of the economic deadlock is still far away.
USD / JPY Short-term Technical Outlook
USD / JPY is holding up well, with a short-term neutral position. In the 4-hour chart, the pair is just below the convergence of 20 and 100 SMA, while the Momentum indicator stabilizes around its 100 level. The RSI is softening, but is also around its line median. The main resistance is at 109.38 the weekly high, while the decline will remain limited as long as the price remains above 108.25.
Support levels: 108.25 107.90 107.50
Resistance levels: 109.00 109.40 109.80
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