FxWirePro: USD/JPY out of steam but maintains bullish outlook
USD/JPY declined in the US session as caution over North Korea and President Donald Trump's abrupt firing of FBI Director James Comey revived safe-haven bids on Thursday. However upbeat U.S. data showing a tightening job…
USD/JPY declined in the US session as caution over North Korea and President Donald Trump's abrupt firing of FBI Director James Comey revived safe-haven bids on Thursday.
However upbeat U.S. data showing a tightening jobs market and accelerating inflation limited the dollar decline.
New applications for U.S. jobless benefits unexpectedly fell last week while producer prices rebounded strongly in April, pointing to a tightening labor market and rising inflation that could spur the Federal Reserve to raise interest rates in June.
Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 236,000 for the week ended May 6, the Labor Department said on Thursday, confounding economists' expectations for a rise to 245,000.
Further downside for this pair is expected to be limited as strong support at 112.67 is set to hold the bears from falling further below.
To the upside, major resistance can be seen at 114.32, a break above this level would take the pair towards next resistance level at 114.90.
To the downside immediate support can be seen at 113.44, a break below this level will open the gates towards next level at 112.67.
