FxWirePro: USD/JPY erases early losses, consolidates above 200-DMA ahead of Jobless Claims data

USD/JPY chart - Trading View 

USD/JPY was trading unchanged at 105.86 at around 07:30 GMT, after closing 0.16% lower in the previous session.

The pair has erased early losses and edged higher from session lows at 105.69 as price action consolidates above 200-DMA support.

Combination of solid retail demand and rising producer prices on Wednesday revived the inflation expectations and backed the reflation trade.

But the FOMC minutes released yesterday showed the Fed will remain accommodative until conditions which would trigger a QE tapering are met (not likely before 2022). 

Focus now on U.S. Initial Jobless Claims. Initial Jobless Claims are expected to continue their slow descent to 765,000 from 793,000.

Continuing Claims is forecast to fall to 4.413 million, the lowest of the pandemic era, from 4.545 million.

After a brief pause on Wednesday's trade, the pair is set to resume upside as technical indicators support gains.

Overbought oscillators could cause minor pullbacks. Major weakness only below 200-DMA.