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The USD/JPY pair is battling round 109.00 after hitting 109.16. A corrective decline is set to stop at the 108.65 level, according to FXStreet’s Chief Analyst Valeria Bednarik.

See: USD/JPY trend remains on the upside, next resistance at 109.39 – Credit Suisse

Key quotes 

“The 4-hour chart shows that, while USD/JPY is still holding above all of its moving averages, technical indicators are correcting overbought conditions, although far from signalling an upcoming decline. The 20 SMA maintains a strong bullish slope, providing dynamic support around 108.30.” 

“As long as the pair remains above 108.65, the downside potential will remain limited.”

“Initial Jobless Claims are expected to show 1.8 million Americas filled for unemployment and while still negative, the number continues to show signs of improvement. The country will also release Q1 Nonfarm Productivity, foreseen at -2.7%, and the Unit Labor Cost for the same period, expected at 5%.”