Key Points
- US Dollar slowly and steadily moving higher versus the Japanese yen and may continue to gain.
- There is a bullish trend line formed on the hourly chart of the USDJPY pair, which is acting as a catalyst for the upside move.
- In the US today, the Initial Jobless Claims report was released by the US Department of Labor.
- The market was expecting a rise to 267K, but it came in at 268K.
Technical Analysis
The US Dollar after tumbling sharply against the Japanese yen started to recover. Currently, it is in an uptrend, and following a bullish trend line formed on the hourly chart. There are many signs on the charts, suggesting more gains in USDJPY.
One more important point is that the trend line is positioned with the 50 hourly simple moving average, which is a positive sign.
On the upside, a break above the 103.00 resistance area may ignite more gains in the near term.
US Initial Jobless Claims
Today in the US, the Initial Jobless Claims was released by the US Department of Labor. The market was expecting the number of people filing first-time claims for state unemployment insurance to increase from 258K to 267K. However, the result was disappointing, as there was an increase to 268K.
The report added that the “previous week’s level was revised down by 1,000 from 259,000 to 258,000. The 4-week moving average was 266,750, unchanged from the previous week’s revised average. The previous week’s average was revised down by 250 from 267,000 to 266,750“.
The result was not positive, but as long as the USDJPY pair is above the trend line, it may trade higher.
