USDJPY Technical Analysis – August 20, 2020

The US Dollar (USD) slid down against the Japanese Yen (JPY) on Thursday, decreasing the price of the USDJPY pair to less than 106.00 ahead the release of the US jobless claims news. The technical bias might remain bearish for a while because the price printed a lower high in the recent upward move on the daily chart.

Technical Analysis

As of this writing, the USDJPY is being traded around 105.73, with an immediate support level near 105.15, the lower trendline arm ahead of 105.00, the psychological number and then comes the major support level around 104.18, a horizontal support as shown in the chart below.           

On the upside, a resistance may be noted near 105.96, the 23.6% Fib level ahead of 106.26, the trendline resistance and then the 106.64-106.70 price zone that is the key horizontal resistance as shown in the graph above. The technical bias may remain bearish as long as 104.18, the key horizontal support remains intact.

US Jobless Claims News

The US department of Labor is scheduled to release the continuing jobless claims report on Thursday. The US continuing jobless claims is considered a key indicator of consumers spending. As per the consensus of economists, the figure is likely to register a reading of 15m by the week ending on August 7, 2020 as compared to 15.486m in the week before. Generally speaking, a higher reading is considered bearish for the US Dollar (USD) and vice versa.

Conclusion

Considering the overall price movement of the USDJPY pair, selling below the 104.18 support zone could be a good trading option.