USD/JPY PRICE FORECAST: US DOLLAR PLUNGES AGAINST YEN AS WEEKLY JOBLESS CLAIMS EXPLODE ON CORONAVIRUS FALLOUTUSD/JPY slipped grea
USD/JPY PRICE FORECAST: US DOLLAR PLUNGES AGAINST YEN AS WEEKLY JOBLESS CLAIMS EXPLODE ON CORONAVIRUS FALLOUT
- USD/JPY slipped greater than 200-pips from Wednesday’s excessive because the US Greenback begins to offer again current beneficial properties
- US Greenback weak spot gained tempo following the jaw-dropping 3.Three million rise in weekly jobless claims amid the coronavirus lockdown
- Spot USD/JPY worth motion now testing confluent help across the 110.00 deal with
I famous on Tuesday that the US Greenback was starting to return below strain as FX volatility ebbs and the FOMC ramps up liquidity efforts. Draw back within the US Greenback has since accelerated after historic jobless claims information exploded off the charts. US Greenback weak spot was witnessed notably in USD/JPY because the Yen gained floor – maybe attributable to its standing as a safe-haven forex.
| Change in | Longs | Shorts | OI |
| Daily | -1% | -4% | -3% |
| Weekly | -19% | 98% | 30% |
USD/JPY PRICE CHART: 4-HOUR TIME FRAME (FEBRUARY 17 TO MARCH 26, 2020)
USD/JPY is now down roughly 200-pips for the reason that intraday excessive printed in the course of the prior buying and selling session, however spot costs now check technical help close to the 110.00 degree. This space of confluence is underscored by the 76.4% Fibonacci retracement of the year-to-date vary recorded by USD/JPY.
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Additionally, buoyancy could also be offered to identify USD/JPY worth motion by the underside barrier of its Bollinger Band. The 50-EMA may provide a level of technical help as properly. If the March 20 intraday low provides manner, nonetheless, USD/JPY might proceed to edge decrease towards the 108.00 deal with.
— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com
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