US dollar pared losses against euro and sterling after data showed that US weekly initial claims unchanged compared to the previous week but better than market expectation. US CPI also reported up 0.5% in June, better than expected at 0.3% and better than last month’s report at 0.4%.

There are 254,000 new jobless claims in the week that ends at July 9. This number is better than analysts’ consensus at 265,000. 4-weeks average claims also declined as much as 5,750 claims to 259,000 from last week’s number at 264,750.

Technical Analysis:

USD/JPY is approaching Fibonacci support area at 106.510-104.671. 20 MA and 50 MA are still rising on hourly chart. Hourly stochastic is oversold but RSI is still falling.

We can wait for a pull-back to within the Fib’s support area in order to look for buy signal confirmation with rebound target at 105.447 and 105.926 in extension, but be careful if the price managed to break the support at 104.671 because in that case the intraday bias will turn bearish and possibly will push USD/JPY lower to 103.374-103.895.

Trading Plan:

BUY on bullish signal confirmation within 106.510-104.671
S/L: 104.50; T/P: 105.447 or 105.926


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