August 14, 2022
  • August 14, 2022

USD / JPY Technical Analysis: Bearish until further notice

By on June 9, 2021 0

With the dollar losing momentum, there may be an opportunity for the pair to move to the 109.00 and 108.55 support levels until the US inflation numbers are released.

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The yen is a popular asset during times of turbulence.

USD / JPY could continue to move within a narrow and limited range until the release of US inflation figures, the most powerful factor affecting the performance of the US dollar in the Forex market this week. Since the start of trading this week, the currency pair has remained stable between the support level of 109.18 and the level of 109.55 and is stable around the 109.45 level at the time of writing. The dollar is still under pressure due to investor disappointment with the May US jobs report. He could see more movement if the US inflation numbers are stronger than expected, as this will raise market expectations for the impending US Federal Reserve policy tightening.

US employers posted a record 9.3 million jobs in April as the US economy reopened at breakneck speed. As a result, the number of job vacancies in the United States rose 12% from the 8.3 million recorded in March. But employers hired just 6.1 million, up 1% from March, according to a Labor Department report yesterday, indicating that jobs are opening up faster than businesses can fill them.

Commenting on the numbers, Job Lab director Nick Bunker said: “Over a year after horrific job losses and pay cuts, job seekers once again have a strong hand in the market. work. He added that the demand for workers is increasing as the economy begins to emerge from the restrictions of the outbreak. Meanwhile, supply is tight as workers take time to return to their normal post-pandemic situation. The result is that the labor market is picking up again faster than expected. “

Hotels and restaurants, which reopened after being forced to close or limit opening hours during the COVID-19 coronavirus pandemic, saw the biggest increase in employment. The number of Americans who left their jobs rose 11% to nearly 4 million in April, the highest number since 2000.

At the end of last week, the Department of Labor announced that the US economy had created 559,000 new jobs in May and that the country’s unemployment rate had fallen to 5.8% from 6.1% in April. The employment figures are generally regarded as exceptional. But with the economic recovery from the coronavirus recession, some economists expected much faster job gains. The United States still lacks 7.6 million jobs as of February 2020.

Technical analysis of the pair:

There is no change in performance and movement, so no change in technical outlook. As I mentioned recently, the psychological resistance at 110.00 will remain the most important for the bulls as it motivates Forex traders to buy, and therefore to move towards stronger bullish levels. With the dollar losing momentum, there may be an opportunity for the pair to move to the 109.00 and 108.55 support levels until the US inflation numbers are released. I always prefer to buy the currency pair on every decline.