• JPY underpinned by slightly better Japanese unemployment rate.
• Subdued USD demand fails to lend any support and stall the downfall.
• Investors look forward to next week’s key releases for fresh impetus.
The USD/JPY pair extended its rejection slide from the 107.00 handle and continued losing ground for the second consecutive session on Friday.
The pair met with some fresh supply following the release of a slightly better-than-expected Japanese unemployment rate, which to a larger extent offset softer Tokyo Core CPI and prelim Japanese industrial production figures.
This coupled with a subdued US Dollar demand, amid holiday thinned liquidity conditions, did little to lend any support and stall the pair’s slide to the 106.20-15 band.
With most major global markets shut to celebrate the Easter long weekend, the pair now seems more likely to enter a consolidation phase ahead of next week’s important macro releases, including the keenly watched NFP, scheduled at the start of a new month.
Technical levels to watch
Bulls might try and defend the 106.00 handle, below which the pair could drop back towards retesting the 105.40 horizontal support. On the upside, 106.60 level now seems to act as an immediate resistance, which if cleared could assist the pair to make a fresh attempt towards conquering the 107.00 handle.
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