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USD / JPY bounces off 108.00 from monthly lows

  • The dollar strengthens and pushes the USD / JPY.
  • US: Unemployment benefit requests fall to lows in more than a year.

The USD / JPY is rising modestly on Thursday, attempting to break through a series of steady declines that began earlier this month after approaching 111.00. The pair fell to 107.80, the lowest level in a month and a half and then rebounded. It recently rose to 108.20, and is trading at 108.15, with small gains for the day.

Treasury yields remain key to USD / JPY performance. Today rates are moving sideways. The 10-year rate is at 1.55%, away from the highs of the day, but also above the recent low.

The US saw an unexpected drop in initial claims for unemployment benefits to the lowest in more than a year. The data did not have a major impact on the market. The focus is on the press conference of Christine Lagarde, president of the European Central Bank. At the meeting, the central bank kept policies unchanged as expected.

Wall Street futures are on neutral ground, trading in ranges. In case of extending the raises, the yen could weaken in the market, while if there is a pullback, it would be strengthened in the market.

The day chart shows the USD / JPY with a bearish bias, but trying to form a floor around 108.00. For the second day in a row, the price fails to consistently extend the lows below 108.00. The 55-day moving average is also located in this area. A close clearly below will point to more falls, while if it remains above, the dollar could recover positions.

Technical levels

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