“¢ The USD gets a goodish lift from better than expected initial jobless claims data.
“¢ A modest rebound in the US bond yields/risk-on mood remained supportive.
“¢ Investors might refrain from placing aggressive bets ahead of Friday’s NFP report.
The USD/JPY pair caught some fresh bids during the early North-American session and spiked to fresh two-week tops, around the 111.60-65 region in the last hour.
A combination of supporting factors provided the required momentum and assisted the pair to finally break out of its narrow consolidative trading range held over the past 24-hours or so. The bid tone surrounding the US Dollar picked up the pace after data released from the US showed that initial jobless claims fell to the lowest level since 1969.
Bullish traders further took cues from a modest rebound in the US Treasury bond yields, which coupled with a positive opening in the US equity markets and the latest optimism over the US-China trade talks dented the Japanese Yen’s relative safe-haven status and remained supportive of the intraday positive momentum.
Further gains, however, are likely to remain limited as investors might now refrain from placing any aggressive bets, rather prefer to wait on the sidelines as the focus now shifts to Friday’s important release of the closely watched US monthly jobs report – popularly known as NFP.
Technical levels to watch
Any subsequent up-move now seems to confront some fresh supply near the 111.80-85 region, which is closely followed by the 112.00 handle and YTD tops, around the 112.15 region. On the flip side, the 111.35 level now seems to have emerged as immediate support, which if broken might accelerate the slide back towards the 111.00 handle en-route the 110.85-80 horizontal support.
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