The US Dollar found support near 105.30 and recovered against the Japanese Yen.
There is a monster bearish trend line forming with resistance at 107.10 on the 4-hours chart of USD/JPY.
The US Initial Jobless Claims for the week ending March 3, 2018 posted a rise from 210K to 231K.
Today, the US nonfarm payrolls figure for Feb 2018 will be released, which is forecasted to increase by 200K.
USDJPY Technical Analysis
The US Dollar formed a decent support around 105.30 after a major decline against the Japanese Yen. The USD/JPY pair is correcting higher, but it is facing a crucial resistance near 107.00-10.Looking at the 4-hours chart of USD/JPY, there was a support formed and the pair recovered above the 38.2% Fib retracement level of the last decline from the 107.67 high to 105.25 low.However, there is a significant resistance around 107.00 on the upside. There is also a monster bearish trend line forming with resistance at 107.10.Moreover, the 76.4% Fib retracement level of the last decline from the 107.67 high to 105.25 low is at 107.10. Therefore, it seems like the 107.00-10 region is a crucial hurdle for more gains in USD/JPY.On the downside, the last swing low of 106.20 is a key support. A break below 106.20 could push the pair towards 105.30. The 100 simple moving average (red, 4-hour) is also a short-term support at 106.50.Recently, the US Initial Jobless Claims for the week ending March 3, 2018 was released by the US Department of Labor. The market was looking for a rise from the last reading of 210K to 220K.The result was lower than the forecast, as there was a rise in claims from 210K to 231K. The report added that:The 4-week moving average was 222,500, an increase of 2,000 from the previous week's unrevised average of 220,500.Overall, the USD/JPY pair may continue to face a strong selling interest on the upside near 107.10. A close above 107.10 could trigger further gains toward 108.00.
Economic Releases to Watch Today
Germany’s Trade Balance for Jan 2018 - Forecast €21.1B, versus €21.4B previous.
Germany’s Industrial Production for Jan 2018 (MoM) - Forecast +0.5%, versus -0.6% previous.
UK Industrial Production for Jan 2018 (MoM) - Forecast +1.5%, versus -1.3% previous.
US nonfarm payrolls Feb 2018 – Forecast 200K, versus 200K previous.
US Unemployment Rate Feb 2018 - Forecast 4.0%, versus 4.1% previous.
Canada’s employment Change payrolls Feb 2018 – Forecast 20K, versus -88K previous.
Canada’s Unemployment Rate Feb 2018 - Forecast 5.9%, versus 5.9% previous.
However, there is a significant resistance around 107.00 on the upside. There is also a monster bearish trend line forming with resistance at 107.10.Moreover, the 76.4% Fib retracement level of the last decline from the 107.67 high to 105.25 low is at 107.10. Therefore, it seems like the 107.00-10 region is a crucial hurdle for more gains in USD/JPY.On the downside, the last swing low of 106.20 is a key support. A break below 106.20 could push the pair towards 105.30. The 100 simple moving average (red, 4-hour) is also a short-term support at 106.50.Recently, the US Initial Jobless Claims for the week ending March 3, 2018 was released by the US Department of Labor. The market was looking for a rise from the last reading of 210K to 220K.The result was lower than the forecast, as there was a rise in claims from 210K to 231K. The report added that:The 4-week moving average was 222,500, an increase of 2,000 from the previous week's unrevised average of 220,500.Overall, the USD/JPY pair may continue to face a strong selling interest on the upside near 107.10. A close above 107.10 could trigger further gains toward 108.00.