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USDJPY : Dollar Down Against Yen Despite Upbeat Unemployment Claims Data

USDJPY : 4 Hour Chart

While looking at the 4 hour chart of USDJPY it seems like the demand for safe haven Japanese Yen continues to be supported by the tensions in Ukraine. USDJPY earlier broke below the rising support trend line when investors turned their attention towards the geopolitical tensions between Russia and Ukraine, but the pair found support at 101.99 and rose. After rising a little the pair again found resistance at 102.38 which was earlier acting as support for the pair and declined. The 50 day SMA might also preventing the pair to move above it.

The upbeat Unemployment Claims data also didn’t provide much support to US dollar and declined as investors are more comfortable with the safe haven currency. If it continues to decline it should again test the support at 101.99 and rise. Failing to hold above this support will pull the pair down to the next support level at 101.73. In my opinion the decline may be for short term but in long term the pair will surge as the concern over geopolitical crisis will ease and investors will again turn to Dollar.