Key news updates for USD/JPY
Updates:
USD/JPY Technical Analysis
We start with resistance at 108.70 (mentioned last week).
USD/JPY fundamental mover
Japanese consumer spending is struggling. Household Spending declined by 3.9%, marking a fourth straight decline.
In the U.S., the Federal Reserve shocked the markets with a dramatic rate cut. The Fed slashed rates by 0.50%, which was the first cut between meetings since 2008. At a press conference, Fed Chair Powell acknowledged the severity of the coronavirus threat and added that he expected the rate cut to boost the U.S. economy. The week wrapped up with sharp employment data. Nonfarm payrolls sparkled, climbing to 273 thousand in February, up from 225 thousand. This crushed the estimate of 175 thousand. Wage growth improved from 0.2% to 0.3%, while the unemployment rate dropped from 3.6% to 3.5%.
108.10 is the next resistance line.
107.30 was breached for the first time since early October.
106.61 has switched to a support role.
105.55 is an immediate resistance line.
104.65 is providing support.
The round number of 104 was a key line in May 2008.
102.50 is the final support level.
USD/JPY Daily Chart
USD/JPY Sentiment
I am neutral on USD/JPY
The yen is making the most of its safe-haven status, as nervous investors are shunning risk due to the coronavirus outbreak. However, the virus is taking a toll on the Japanese economy, which could make the yen less attractive to investors.
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