USD/JPY Remains Below Resistance at 112.00

Tokyo (April 6) USD/JPY failed to sustain Wednesday’s attempt at a rebound but is modestly higher in today’s session, trading at 110.90, a gain of 0.21% over Wednesday’s North America close.

Despite the advance, however, a move above 112.00 is required to improve the broader outlook for USD/JPY. At present, this level is expected to hold. Thus, buying at current levels continues to carry a high degree of risk.

First support remains at the low established in last week’s trading at 110.11. An eventual break below this level is expected, as the downside target is at the 108.00 level, which is derived from the recent trading range breakdown shown on the daily chart.

In the US today, weekly jobless claims will be released at 08:30 ET. Volatility has the potential to increase in tomorrow’s trading, given the release of the March US employment data.

Source: EconomicCalendar