USDJPY retreat today from monthly highs as the risk returns to markets amid an increase in coronavirus cases across the globe. Confirmed cases in the U.S. approaches 70,000 while the deaths have surpassed 1,000. A big hit came from the jobless claims. The Initial Jobless Claims came in at 3283K, topping the expectations of 1000K on March 20. The Initial Jobless Claims 4-week average came in at 998.25K above the previous reading of 232.25K.
On other economic data, the United States Gross Domestic Product came in at 2.1% in line with forecasts for the fourth quarter. The Core Personal Consumption Expenditures quarterly reading came in at 1.3% above the expectations of 1.2% in the fourth quarter. The United States Goods Trade Balance rose from previous $-65.5B to $-59.89B in February.
USDJPY is 1.19% lower at 109.85 in a pullback from the monthly highs as the rally that started on March 10 is intact, and the positive momentum gains momentum above the 100-day moving average.
On the downside, the first support for USDJPY will be met at 109.60 today’s low while extra bids will emerge at 109.02 the 100-day moving average. If the Japanese Yen gains momentum, the next support area will be met at 108.27 the 200-day moving average.
On the contrary, immediate resistance for the USDJPY pair stands at 110.61 the daily top. The next hurdle will be meet at 111.67 the high from March 25th. The recent high from February 20th at 112.04 will provide the next supply zone.