Forex News: USDJPY Neutral at U.S. Jobless Claim Increase
According to the Labor Department, initial claims for state unemployment benefits increased 38,000 to a seasonally adjusted 368,000 in the week ended Jan. 26. Economists at Reuters expected claims to increase to 350,000. Initial claims dropped sharply in the week ended Jan. 12 and maintained a downtrend in the following week. The four-week moving average for new claims gained 250 to 352,000, suggesting improvement in labor market conditions.
Personal income for Americans also rose last month +2.6%, the Commerce Department said Thursday. That was the largest increase since December 2004, and above analyst’s expectations for a +0.8% gain. The rise in incomes suggests total consumer spending power entered the New Year strong.
USDJPY 1-minute Chart: January 31, 2013
Chart from FXCM Trading Station, created by Courtney Edwards
The USDJPY did not react to the larger than expected rise in jobless claims and personal income. Prior to the US labor market data, the USDJPY cross remained around the 91.00 figure. The cross down was 0.11% at 90.98. Next support levels align at 90.75 (low Jan. 31) to 90.34 (low Jan. 29) and finally 90.29 (low Jan, 25).
--- Written by Courtney Edwards, DailyFX Research
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