Seeing the USD/JPY pair drop to 156.60, it seems that the USD still isn't very strong amid the tense situation in the Middle East. Yesterday, Fox News reported that the U.S. military attacked a tanker ship again, while Iran warned it would respond with full force. Usually, such situations attract capital inflows, but the market appears quite soft.



Another point of interest is the U.S. employment data, which came in much stronger than expected, adding 115,000 jobs in April, compared to the market forecast of only 62,000. However, wages slowed down, increasing just 0.2% month-over-month. This is why the USD hasn't rebounded strongly; the labor market is strong, but wages are not moving, limiting upward pressure on the U.S. dollar.

Technically, it still looks weak. The price remains below the 20- and 100-day moving averages. RSI is around 44, indicating that upward momentum is insufficient. A key support level is at 156.44; if it breaks below this, we should watch for deeper weakness. But as long as it stays above this level, the USD/JPY pair may continue to move within a relatively narrow range.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned