The Japanese Yen (JPY) gained ground against the US Dollar (USD) on Thursday, with USD/JPY trading lower near the 162.30 level after retreating from recent highs. This movement occurred despite the release of stronger-than-expected US labor market data, as the US Dollar failed to find support from these figures [1].
US Initial Jobless Claims fell to 215,000, outperforming expectations of 218,000 and the previous reading of 217,000. The four-week average also declined to 218,750 from 222,500, indicating that layoffs remain limited. However, Continuing Jobless Claims edged up slightly to 1.814 million from 1.806 million, suggesting that workers are taking longer to secure new employment [1].
Market attention in Japan is now focused on the upcoming June Producer Price Index (PPI) release, scheduled for early Friday. The monthly PPI is expected to rise by 0.3%, a slowdown from the previous 0.9%, while the annual figure is anticipated to accelerate to 6.8% from 6.3%. A stronger PPI reading could reinforce expectations that the Bank of Japan (BoJ) may remain cautious about maintaining an overly loose monetary policy, potentially offering further support to the Yen [1].
From a technical perspective, USD/JPY is trading at 162.37, maintaining a constructive bullish bias as it remains above both the 20-period Simple Moving Average (SMA) at 162.27 and the 100-period SMA at 161.74. The pair is also above horizontal support at 162.28, with the Relative Strength Index (RSI) at 54.50 indicating moderately positive momentum without signaling overbought conditions. Resistance levels are noted at 162.51, 162.65, and 162.71, while support is seen at 162.28, 162.27, and 161.74 [1].
CONCLUSION
The Japanese Yen's recovery against the US Dollar reflects market skepticism toward the Greenback despite positive US jobless claims data. Upcoming Japanese PPI data and expectations regarding Bank of Japan policy could further influence the Yen's direction in the near term.