USDJPY is correcting around 108.71.
The Japanese currency began to rally after the country’s Ministry of Health announced approval for the use of two vaccines: from the companies Moderna and AstraZeneca. According to the Ministry of Health, the Moderna vaccine will begin to be used as early as May 24, but the use of AstraZeneca has been postponed for now. Also, the instrument is positively influenced by macroeconomic statistics. Japan’s nationwide core consumer price index for April was -0.1% y / y, better than analysts predicted -0.2%. The consumer price index reached -0.4%, and the index of manufacturing activity in the services sector is at 45.7 points.
The key data for the American currency was the unexpected decrease in the number of initial applications for unemployment benefits, which amounted to 444 thousand, which is less than the expected 450 thousand.The average number of applications for benefits over the past four weeks also decreased to 504.75 thousand against 535.25 thousand. a week earlier. However, the positive was short-lived, and the data on the manufacturing activity index from the Federal Reserve Bank of Philadelphia for May stopped the upward trend. The indicator dropped to 31.5 points from 50.2 points a month earlier.
Support and resistance levels
The instrument is moving in an upward corrective trend, forming an upward channel, which can subsequently transform into a “flag” pattern. Technical indicators are in a state of uncertainty: fast EMAs on the alligator indicator almost crossed with the signal line, and the histogram of the AO oscillator approached the transition level.
Support levels: 108.35, 107.48
Resistance levels: 109.33, 110.75
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