USD/JPY To Find Major Support At 101.00, Bullish Reversal Likely

FXOpen

USD/JPY held off the channel support on Thursday after the upbeat US job reports and minutes from the Bank of Japan (BoJ) monetary policy meeting. The pair is expected to pull back from the 101.00 support area, targeting the 103.30 resistance.

Technical Analysis

As of this writing, the pair is being traded near 101.58. Support may be seen around 101.33, the low of yesterday ahead of the 101.00 handle that is the 50% fib level as well as long term trendline support. A break and daily closing below the 101.00 support will push the pair into stronger bearish territory, opening doors for further dips below the 100.00 handle.

usdjpy-d1-capital-trust-markets

On the upside, the pair is likely to face hurdle around 102.03 that is the 38.2% fib level resistance before 102.35, 55 Daily Moving Average (DMA). The short term sentiment is bullish and will remain bullish as far as 101.20 support remains intact as per swing analysis.

US Employment Reports

The jobless claims in the US dropped to 300,000 during the previous week as compared to 326,000 in the week before, a report by the labor department revealed yesterday. The jobless claims figure came above the median projection of 320,000 hence showing steady progress in the labor sector.

Similarly, the total number of people having jobless benefits also declined to 2.776 million during the week ended on March 28 compared with 2.838 million in the week before, analysts had predicted an increase to 2.850 million during the aforementioned period.  USD/JPY fell despite the upbeat job reports, showing considerable weakness in the price action.

Conclusion

The pair is expected to find support around the 101.00 handle before resuming the upside movement amid US growth optimism and fragile recovering in Japan. 

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.