Key news updates for USD/JPY
Updates:
USD/JPY Technical Analysis
We start with resistance at 110.62.
109.73 is protecting the 110 level, which has psychological significance.
108.70 (mentioned last week) is next.
108.10 is a weak resistance line.
USD/JPY fundamental mover
Japan posted a trade deficit of JPY 0.19 billion, higher than the estimate of JPY -0.11 billion. This followed a rare surplus a month earlier. Manufacturing continues to contract, as the Manufacturing PMI slowed for a third successive month, falling to 43.7 points. Inflation levels remain weak, as Core CPI fell to 0.4%, down from 0.6 percent. This was its lowest level in five months.
In the U.S., unemployment claims continue to reflect the extent of the economic turmoil caused by Covid-19. Jobless claims dropped to 4.4 million, down from 5.5 million a week earlier. In the past five weeks, new claims have totaled a staggering 26 million, as the Covid-19 crisis has shut down much of the U.S. economy. There was more bad news from March durable goods orders, which plunged by 14.4%, its first decline in four months. The core reading declined by 0.2%, after a decline of 0.6%. The UoM Consumer Sentiment slumped to 71.8, down sharply from 89.1 a month earlier. Still, this beat the estimate of 67.8 points.
107.30 remains an immediate support level. It could see action early next week.
106.61 has held in support since mid-March. 105.55 follows.
104.65 is the final support line for now.
.
USD/JPY Daily Chart
USD/JPY Sentiment
I remain bullish on USD/JPY
Corvid-19 has ravaged the world economy, but investors remain optimistic that the U.S. will be able to rebound more quickly that other countries. This bodes well for the U.S. dollar against its major rivals.
- EUR/USD forecast – for everything related to the euro.
- GBP/USD forecast – Pound/dollar projections.
- AUD/USD forecast – analysis for the Aussie dollar.
- USD/CAD forecast – Canadian dollar predictions.
- Forex+ weekly forecast – Outlook for the major events of the week. Safe Trading!
Share
