USD/JPY: Bears gain ground ahead of US employment data

The USD/JPY pair is trading in the 107.10 price zone with the risk skewed to the downside. US Initial Jobless Claims could trigger a substantial move if the data comes diverges from expectations, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“USD/JPY is neutral-to-bearish according to the 4-hour chart, as the pair is barely holding above a mildly bearish 20 SMA, while below the larger ones. Technical indicators, in the meantime, hover around their midlines with modest bearish slopes.” 

“A relevant directional move seems unlikely unless US employment data diverges from expectations and triggers a strong directional sentiment.”

“Japanese markets were closed amid a local holiday, with no figures coming from the country. The US will publish Initial Jobless Claims for the week ended July 17, seen up by 1.3 million.”