Chart - Courtesy Trading View
USD/JPY was trading 0.53% higher on the day at 133.35 at around 08:40 GMT.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits rose moderately to 198,000, up from an unrevised level of 191,000 in the prior period.
Data showed no signs yet that tightening credit conditions were having a material impact on the U.S. labor market, which remains tight.
The four-week moving average for claims increased by 2,000 to 198,250, while continuing claims edged up to 1.689 million from a downwardly revised total of 1.685M in the previous week.
Further, U.S. Q4 economic growth was revised lower to 2.6%, according to final data from the Bureau of Economic Analysis, down from an increase of 3.2% in the prior quarter.
Looking forward, the Fed's preferred inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index for February, will be crucial for directions.
US Core Personal Consumption Expenditures Price Index is expected to stay at 4.7% YoY. Softer inflation will likely weigh on hawkish Fed bets.
Major Support Levels:
S1: 132.87 (21-EMA)
S2: 132.27 (5-DMA)
Major Resistance Levels:
R1: 134 (Psychological mark)
R2: 134.42 (110-EMA)
Technical Summary: USD/JPY has broken resistance at 21-EMA and daily cloud top raising scope for further upside. Momentum is bullish, MACD is on verge of bullish crossover on signal line.
Price action has paused at 55-EMA resistance, break above will see gains till 110-EMA at 134.42.


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