USDJPY The dollar is actively losing value

USDJPY The dollar is actively losing value. Due to the weakening rate of the American currency, the USD/JPY pair corrects downwards, trading around the level of 114.47.

The Japanese currency is moving without pronounced dynamics amid a worsening epidemiological situation due to the rapid spread of the Omicron coronavirus strain. Over the past day in Tokyo, 21.5K, new infection cases were detected in the population, another record since the pandemic’s beginning. However, the country’s authorities have said that no emergency regime is planned, and although medical institutions have reported that hospital bed occupancy is already over 50%, the situation is under control. As for macroeconomic statistics, there are no reasons for positive either: the January PMI index in the services sector fell to 47.6 points from 52.1 points in December, and the indicator dynamics have remained negative since last autumn.

The US dollar index is falling, having reached local support of around 96.000. Investors were extremely disappointed by Nonfarm Payrolls, the outflow of which amounted to 301K with a projected increase of 207K workers. The indicator turned negative for the first time since January last year when a value of –78K. Today, data on jobless claims will be published, and the labor market expects a significant increase in new claims, which may negatively affect the dollar dynamics.

Support and resistance

The asset is being corrected within the global upward channel. Technical indicators are again in a state of uncertainty: fast EMAs on the Alligator indicator are preparing to cross the signal line downwards, and the AO oscillator histogram is again forming down bars.

Resistance levels: 114.82, 116.20.

Support levels: 114.14, 112.75.

USDJPY The dollar is actively losing value

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