The US Dollar eased modestly against the Yen to finish in late New York at 107.65 (107.75 yesterday). Earlier in the New York trading day, a report from Japan’s Nikkei that the Bank of Japan will discuss scrapping its cap on government bond purchases at its policy meeting next week (27 April) saw USD/JPY spike to 108.042 overnight highs.
The release of weak US data weighed on this currency pair. The number of Americans who claimed Unemployment benefits reached 4.427 million bringing the 5-week total to 26.45 million. Which effectively cancels out all the new jobs created over the past 10 years. USD/JPY slipped to 107.347 before climbing to settle at 107.65.
USD/JPY has immediate resistance at 108.00 followed by 108.50. The big resistance level is at 109.00. Immediate support can be found at 107.40 and 107.10. Look for a likely range today of 107.40-108.40. Prefer to buy dips.