- USD / JPY continues with sideways movements below 105.00.
- Dollar weakness limits the pair’s rebound.
The USD / JPY rose to 104.78 after the start of the American session and despite the below-expected US employment data, the price then fell to 104.60. The pair continues to travel sideways, in a context of low volatility and without moving away from Wednesday’s weekly low of 104.40.
Shares in Wall Street They opened with small gains and Treasury yields are rising, also modestly, in the run-up to large debt placements. These factors are giving some support to the dollar, but in general the greenback shows weakness.
The Dollar index operates around 90.30 after having tested the floor of the week at 90.20. The DXY held above and then experienced a slight rebound. This despite the fact that the data on requests for unemployment benefits showed worse than expected figures. While both initial and ongoing petitions fell, they did so less than expected and still reflect a job market far from what it was before the pandemic.
From a technical point of view, USD / JPY remains in consolidation mode after the sharp drop on Monday and Tuesday. The first strong resistance can be seen at 104.85, where a rise above the dollar would be positioned for further gains. In the opposite direction, if it affirms below 104.50, the outlook would point to more weakness ahead and an extension of the retracement from 105.75 (February 5 high).
Technical levels
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