USD/JPY Pressured by Record-Smashing Spike in Jobless Claims

USD/JPY PRICE FORECAST: US DOLLAR PLUNGES AGAINST YEN AS WEEKLY JOBLESS CLAIMS EXPLODE ON CORONAVIRUS FALLOUT

  • USD/JPY slipped some-more than 200-pips from Wednesday’s high as a US Dollar starts to give behind new gains
  • US Dollar debility gained gait following a jaw-dropping 3.3 million arise in weekly jobless claims amid a coronavirus lockdown
  • Spot USD/JPY cost movement now contrast feeder support around a 110.00 hoop

I remarkable on Tuesday that a US Dollar was commencement to come underneath vigour as FX sensitivity ebbs and a FOMC ramps adult liquidity efforts. Downside in a US Dollar has given accelerated after historic jobless claims information exploded off a charts. US Dollar debility was witnessed quite in USD/JPY as a Yen gained belligerent – maybe due to a standing as a safe-haven currency.

USD/JPY PRICE CHART: 4-HOUR TIME FRAME (FEBRUARY 17 TO MARCH 26, 2020)

USDJPY Price Chart US Dollar to Yen Forecast

USD/JPY is now down roughly 200-pips given a intraday high printed during a before trade session, though mark prices now exam technical support nearby a 110.00 level. This area of connection is underscored by a 76.4% Fibonacci retracement of a year-to-date operation available by USD/JPY.

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Also, irresolution competence be supposing to mark USD/JPY cost movement by a bottom separator of a Bollinger Band. The 50-EMA competence offer a grade of technical support as well. If a Mar 20 intraday low gives way, however, USD/JPY could continue to corner reduce toward a 108.00 handle.

— Written by Rich Dvorak, Junior Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time marketplace insight