- USD/JPY tallied a fifth consecutive day of gains rising to a high near 140.40.
- Jobless Claims decelerated in the second week of July and fueled a rise in US yields.
- Philly’s Fed Survey and Existing Home Sales showed poor results.
The USD strengthened on Thursday and trades with gains against most of its rivals, including the EUR, GBP, CHF and JPY. Lower Initial Jobless Claims fueled a rise in US bond yields and allowed the USD – measured by the DXY index – to rise to its highest level in seven days at 100.80.
Investors assess mid-tier US data. All eyes on Japan’s Inflation data
The US reported mid-tier data. On the negative side, the Philadelphia Federal Reserve Manufacturing survey showed worrying results as it index declined more than expected, coming in at -13.5 vs the consensus of -10. In addition, following Wednesday’s soft Housing data, Existing Home Sales from the US from June also showed weakness. The figure showed a contraction of 3.3% MoM in June with a 4.16M decrease.
That being said, investors are weighing more the lower-than-expected Initial Jobless Claims figures for the second week of July. The number of people filing for unemployment benefits came in at 228,000 vs the 242,000 expected and also below the previous figure of 237,000.
US Treasury yields advanced across the board. The 2-year yield displays nearly 2% gains and stands at 4.88%, while the 5 and 10-year yields rose to 4.10% and 3.84% showing more than 2% increase. Ahead of next week's Federal Reserve (Fed) meeting, markets have discounted mainly a 25 basis point increase while the odds of another hike past July continue to be low according to World Interest Rate Probabilities (WIRP)
On the Japanese side, investors will eye Japanese inflation figures from June. The headline Consumer Price Index (CPI) is expected to have accelerated to 3.5% YoY in June, while the Core measure to decelerate slightly to 4.2%.
USD/JPY Levels to watch
The daily chart indicates that the bulls are gaining ground, marching towards positive territory. As for now, the Relative Strength Index (RSI) points noth but remains in negative territory while the Moving Average Convergence Divergence (MACD) prints lower red bars, indicating at a fading selling momentum.
Resistance levels: 140.70, 141.00, 141.95 (20-day Simple Moving Average)
Support levels: 140.00, 139.60,139.00.
USD/JPY Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD breaks below 1.1000 on stellar NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created far more jobs than initially estimated in September, dragging EUR/USD to the area of new lows near 1.0950.
GBP/USD breaches 1.3100 after encouraging US Payrolls
The continuation of the uptrend in the US Dollar motivates GBP/USD to accelerates its losses and breaches 1.3100 the figure in the wake of the release of US NFP.
Gold rebounds from daily lows and flirts with $2,670
Following a post-NFP dip to the $2,640 region, Gold prices now embarks on an acceptable rebound and retest the area of $2,670 per ounce troy despite the marked advance in the US Dollar and rising US yields across the board.
US Payrolls surge in September, as 50bp rate cut ruled out
US payrolls data surprised on the upside in September, rising by 254k, smashing expectations of a 150k rise. The unemployment rate fell to 4.1% from 4.2%, average hourly earnings increased to a 4% YoY rate and there was a 72k upwards revision to the previous two months’ payrolls numbers.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.