USD/JPY edges higher after US jobless claims

FXStreet (Córdoba) - USD/JPY edged a tad higher and erased daily losses as the dollar benefitted from better-than-expected US initial jobless claims and upward revised labor costs.

US initial jobless claims dropped to 276K in the week ending May 24 versus 279 K expected. Meanwhile, labor costs rose by 6.7% in the first quarter above the 6.3% increase expected and after a rise of 5.0% the previous quarter.

USD/JPY climbed to the 124.30 area but found resistance at the 100-hour SMA. At time of writing, the pair is trading at 124.20, virtually unchanged on the day. The pair recovered from a low of 123.76 scored during the European session as the dollar takes back losses.

USD/JPY levels to watch

In terms of technical levels, USD/JPY could find immediate resistances at 124.28 (100-hour SMA), 124.56 (daily high), 124.67 (Jun 3 high). On the flip side, supports are seen at the 123.75 area (Jun 2, 3, 4 lows) and 123.50 (10-day SMA).

Better employment data to bode well for Australian growth ahead - DB

Adam Boyton, Chief Economist at Deutsche Bank, reviews the Australian GDP data release and further expects a consistent rise in labour market data to lead to a quarterly Australian GDP growth at 0.7%/0.8%qoq.
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