The upside momentum in the USD/JPY
pair stalled at 122.00, making way for a fall back to 100-DMA at 121.76 levels.
USD pares gains on uptick in jobless claims
The
USD pared gains after the last week’s jobless claims in the US printed at 276K
compared to the expected print of 262K. The 2-yr treasury yield, which mimics
rate hike bets, fell more than one basis points.
Still, the pair is
sitting comfortably in a positive territory as the Fed rate hike bets got a
boost following strong US data and Yellen’s hawkish comments. The focus now
shifts to the Us non-farm payrolls report due tomorrow.
USD/JPY
Technical Levels
The immediate resistance is located at 122.00,
above which the pair could run into 122.12 (61.8% of 125.85-116.08). A break
above the same would open doors for 123.01 (July 27 low). On the other side,
support is seen at 121.50 (Oct 26 high) and 121.00 levels.
