FxWirePro: USD/JPY erases early gains, extends range trade around 108 amid lingering coronavirus fears

USD/JPY chart - Trading View 

USD/JPY has erased early gains and was trading rangebound around 108 handle, down from session highs at 108.19.

Lingering concerns over the Japanese outbreak of COVID-19 would potentially jeopardise the yen's safe-haven allure.

Also, Moody’s on Friday, said it expects Japan’s GDP to contract by 2.4% in 2020, which will have knock-on effects on the job market.

On the other side, US initial jobless claims for the week to 28th March surged to another record, 6.648 million after the prior week’s 3.307 million (revised from 3.283mn).

Focus now on US Non-Farm Payrolls March, analysts expect NFP to lose 100,000 in March, first decrease since September 2010. Unemployment (U-3) is expected to rise to rise to 3.8% from 3.5%. 

As governments across the globe scramble to contain the pandemic, trades are likely to be volatile.

Technical bias for the pair is neutral. Stiff resistance is seen at 200-DMA at 108.31. Breakout above could change near-term dynamics.

Major Support Levels: 107.65 (5-DMA), 106.45 (Kijun sen)

Major Resistance Levels: 108.31 (200-DMA), 108.69 (110-EMA)