USD/JPY rebounds to 104.80 on US data

USD/JPY remains on the defensive today, currently attempting a tepid bounce to the 104.80 area following US releases.

USD/JPY focus on BoJ, US GDP

Spot keeps the rebound alive from daily lows in the mid-104.00s after US releases failed to meet expectations today. In fact, Initial Claims ticked higher to 266K WoW, taking the 4-Week Average a tad lower to 256.5K from 257.5K from the previous week.

Additional results saw the Goods Trade deficit widening to $63.3 billion during June from $60.59 billion.

The pair remains in a cautious tone in light of the imminent BoJ meeting, amidst growing speculations on the potential stimulus package (supposedly) to be delivered by the central bank tomorrow.

USD/JPY levels to consider

As of writing the pair is losing 0.50% at 104.86 and a breakdown of 103.98 (low Jul.26) would open the door to 104.17 (20-day sma) and then 103.28 (50% Fibo of 99.08-107.48). On the upside, the initial hurdle aligns at 106.03 (55-day sma) followed by 107.48 (high Jul.21) and finally 107.92 (100-day sma).