Chart - Courtesy Trading View
USD/JPY was trading 0.51% higher on the day at 129.05 at around 06:20 GMT, outlook remains bearish.
The US dollar remains under pressure as fears of economic slowdown loom over the US, especially after the recently softer data.
Data on Thursday showed US Unemployment Claims dropped to the lowest levels since late April 2022, to 190K for the week ended on January 13 versus 214K expected and 205K prior.
Further, the Philadelphia Fed Manufacturing Survey Index improved to -8.9 for January compared to -11.0 market forecasts and -13.7 previous readings.
However, US Building Permits eased in December to 1.33M MoM versus 1.37M consensus and 1.351M prior while the Housing Starts also dropped to 1.382M during the stated month from 1.401M in November, versus 1.359M expected.
Looking forward, Fed talks remain in the spotlight ahead of the pre-FOMC blackout starting from Saturday.
Major Support Levels:
S1: 128.56 (5-DMA)
S2: 126.98 (Lower BB)
Major Resistance Levels:
R1: 129.70 (200H MA)
R2: 131.06 (21-EMA)
Summary: Major technical bias for the pair remains bearish. 21-EMA is stiff resistance, any meaningful upside only on decisive break above.
