FxWirePro: USD/JPY pares some of previous session's losses ahead of Biden's meeting with world leaders

Chart - Courtesy Trading View 

USD/JPY was trading 0.19% higher on the day at 115.15 at around 04:05 GMT, erasing some of previous session's losses.

Market sentiment turns cautiously positive as investors cheer the news of a meeting hosted by US President Joe Biden with international leaders on the potential Russian invasion of Ukraine.

Investor sentiment improves on hopes for diplomacy in Ukraine. Demand for safe-haven Yen ebbs supporting the pair higher.

On the data front, US Initial Jobless Claims, published by the Department of Labor came in at 248k, well above the market estimates and previous print of 219k and 225k respectively.

Earlier on Friday, Japan reported a fifth straight month of inflation, with energy prices posting their biggest annual rise in 41 years.

St. Louis Fed president James Bullard on Thursday reiterated his call for the Fed funds rate to be raised to 1% by July to combat stubbornly high inflation.

Cleveland Fed President Loretta Mester said the pace of hikes will need to be faster than previous cycles. Hawkish Fed speak continues to boost dollar.

Major Support Levels: 

S1: 115

S2: 114.64 (55-EMA)

Major Resistance Levels: 

R1: 115.33 (5-DMA)

R2: 115.51 (200H MA)

Summary: USD/JPY pauses downside at daily cloud support. Major bias remains bullish. Bounce off cloud support will see upside resumption.