FxWirePro: USD/JPY sees multiple rejections at 55W EMA, breach below 200-DMA will see more downside

USD/JPY chart - Trading View 

USD/JPY has edged higher from session lows at 105.54 and was trading at 105.68 at around 07:10 GMT.

U.S. dollar was offered across the board as the dismal US jobless claims data overshadowed losses in the US stock markets. 

Weekly Initial Jobless Claims (for the week ending on 13 February) printed at 861K versus forecasts for a 765K and the prior week’s number was revised higher by over 50K to 848K.

The cautious moves gained support, dragging the pair lower amid rising concerns of fresh coronavirus (COVID-19) variant reported from Japan.

Even as nations struggle to contain virus variants from Britain, Brazil and South Africa, Japanese health authorities report a new strain of the deadly virus.

On the data front, Japan’s National Consumer Price Index recovered from -1.2% to -0.6% YoY in January. Core CPI grew beyond -0.4% prior to +0.1% YoY.

Markets await clues on the US covid aid package and the February preliminary Markit PMI report for fresh impulse.

Technical bias is neutral. The pair struggles at 55W EMA. Price action is pivotal at 200-DMA support. Break below will see bearish continuation.