The USD/JPY currency pair finds itself in a pivotal position as it retreats from the formidable resistance zone spanning 149-151. Market watchers are keenly anticipating the release of significant economic data today, specifically the Challenger Job Cuts and initial jobless claims reports.
Economists are bracing for a potential uptick in jobless claims, which, if realized in line with or higher than forecasts, could exert weakness on the US dollar. In such a scenario, the price could move lower towards the support zone at 147.63-147.36 (blue colored rectangle), adding fuel to bearish sentiments.
Conversely, should jobless claims come in lower than expected, it may propel the price back towards the resistance zone, potentially instigating a bullish sentiment. Traders should keep a close eye on this pivotal economic data release.
From technical perspective in the hourly timeframe chart, USD/JPY is on the brink of witnessing a death cross, as the EMA 50 and EMA 200 indicators draw near. Additional bearish signals emerge as the MACD line and histogram linger below the zero level, while the William % R indicator remains positioned below -40.
In the short term, the USD/JPY trend continues to exhibit bearish tendencies. However, a decisive return to the key resistance zone between 149 and 151 could potentially alter this trajectory, injecting a more bullish sentiment into the market. Traders are urged to remain vigilant and adapt their strategies accordingly as market dynamics unfold.
Previous 75.151K
Forecast 210K vs Previous 204K
Forecast -62.30B vs Previous -64.70B
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