USDJPY US labor market continues to strengthen
USDJPY US labor market continues to strengthen. The USD/JPY pair corrects upwards, trading around 113.60. All attempts of the Japanese currency to reverse the trend were unsuccessful after the publication of national economic statistics.
Thus, the level of Japan’s Q3 GDP continued to decline, and the decrease in the by 0.9% MoM led to a decrease by 3.6% YoY, which is much worse than the 3.1% decrease expected by analysts. Consumer spending for the same period fell by 1.3% after rising by 0.9% earlier. Obviously, the refusal to ease the coronavirus restrictions in Japan could lead to an even greater slowdown in the economy in the last quarter of the year.
As for the American currency, the first signals that it will end the current trading week in an uptrend appeared. The JOLTS report on the number of open vacancies in the labor market unexpectedly pleased investors with an increase from 10.602M to 11.033M, which speaks of the gradual withdrawal of the United States from the fuel crisis, which even led to the unfreezing of strategic oil reserves.
Support and resistance
The asset corrects, forming a local correctional Expanding formation pattern. Technical indicators are in a state of uncertainty: indicator Alligator’s EMA fluctuations range has narrowed almost completely, and the histogram of the AO oscillator is forming new ascending bars, being in the sell zone.
Resistance levels: 114.18, 115.47.
Support levels: 113.21, 112.04.