USD/JPY: Buyers in Control, Takes-out Wednesday’s High
The demand for the Japanese currency is seen diminishing in the European session, now sending USD/JPY further in the positive territory, as focus now remains on the US jobless claims due later today.
USD/JPY on its way to daily R1 at 107.45
After
a brief period of consolidation around 107 handle, the USD/JPY pair
regained its upbeat momentum and climb back higher above the last as the
underlying risk tone got better on the back of a sharp rally in the oil
prices, which resulted in a minor-pullback in the European equities. At
the time of writing, USD/JPY trades at 107.30, up +0.24% on the day,
while Germany’s DAX rises 0.74% and the pan-European benchmark the Euro
Stoxx jumps +0.81%.
Markets now await the sentiment on the Wall
Street ahead of the US jobless claims for next direction on the major.
Market’s consensus forecast sees claims rising slightly to 262,000 for
the week through April 30, slightly above 248,000 print booked for
mid-April, the lowest since 1973.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 107.50 (May
4 high/ psychological levels). A break above the last, the major could
test 108/108.20 (Apr 29 High). While to the downside, the immediate
support is seen at 106.70/66 (5-DMA/ 1h 100-SMA) and below that at 106
(round number).
