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FxWirePro: USD/JPY fails to close above 21-EMA, dollar depressed as weak jobless claims underscores need for stimulus

USD/JPY chart - Trading View USD/JPY was trading 0.18% lower on the day at 104.04 at around 04:10 GMT, bias is bearish. Failure to close above 21-EMA has negated scope for upside. Gravestone Doji at highs adds to the dow…

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FxWirePro: USD/JPY fails to close above 21-EMA, dollar depressed as weak jobless claims underscores need for stimulus
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USD/JPY chart - Trading View 

USD/JPY was trading 0.18% lower on the day at 104.04 at around 04:10 GMT, bias is bearish.

Failure to close above 21-EMA has negated scope for upside. Gravestone Doji at highs adds to the downside pressure.

US data overnight that showed the number of Americans filing first-time claims for jobless benefits jumped to a near three-month high.

Initial jobless claims rose by 137,000 to 853,000 in the week ended Dec. 5, Labor Department data showed on Thursday. On an unadjusted basis, the figure increased by almost 229,000.

Weak jobless claims underscores need for stimulus to support the economy and hence keeps the dollar depressed.

U.S. inflation increased 0.2% in November, beating forecasts at 0.1%, but was broadly still quite low, with threat of building price pressures in the near future.

Technical bias for the pair remains bearish. Price action grinds lower in sloping channel pattern and rejection at 21-EMA has dented scope for further gains.

Strong support on the downside lies at 103.45 (trendline). Break below will plummet prices further. 
 

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