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US dollar little changed After Key Data, But Still Supported

USDJPY : Hourly Chart

USDJPY has been resisted by the resistance at 109.31 couple of times like today. Although the downbeat durable goods orders and Unemployment claims data are the main reason for decline. The series of upbeat US data earlier built the expectations among investors that economic is recovering now and Fed might therefore start increasing interest rates soon.

On the hourly chart, the pair declined from the resistance at 109.31 and most probably will find support at 109.08. So it still seems to be supported. There is another rising support trend line which will prevent the pair in declining further if the pair breaks below the support at 108.92.

What Data is Showing?

The official data showed that the order for durable goods declined by 18.2% in August after a record 22.5% gain in July. Economists were expecting a decline of 17.7%. Whereas the orders for core durable goods which excludes volatile transportation items climbed .7% in August as expected. So the volatile demand of airplanes affected the Durable goods order, excluding which data seems good.

A separate report showed that the number of people who applied for unemployment benefits last week rose by 12K to 293K whereas the initial claims continue to remain near the eight year low amid very low rate of layoffs. However the 4 week moving average which gives a better look of the labor trends increased by 1250.