The uncertainty in global financial markets made investors look for safety assets: the US dollar and the Japanese yen. Meanwhile, the US dollar rose when Initial Jobless Claims unexpectedly fell (264K vs. expectations 270K).
The tone remained negative in the market. The yen remained at the local lows staying in a range 106.80 – 106.25. The resistance is at 107.00, the support is at 106.00.
MACD indicator is in a negative area. MACD may continue its growth today. That might be a buy signal. RSI is still near the oversold level of 30. The pair USD/JPY is below the Moving Averages (50, 100 and 200) on the 4 hour graphic. The pair is on its historical lows at the daily chart.
The USD/JPY is oversold and we expect a correction. The levels of 107.00 and 108.00 are its targets.