Weaker On Initial Jobless Claims Print, Underperforms On Crosses Amid US Equity Bounce

Yen lost nearly 0.40% against the USD for Thursday's session, the second worst G10 performer behind CHF (-0.58%). USD/JPY tracks near 147.25 in early Friday dealings, within recent ranges. Post the Asia close dips in the pair sub 146.00 were supported.

• The main focus in US trade was the lower-than-expected initial jobless claims in the US, which provided USDJPY with a firm boost. Markets grabbed onto the faintest signs of strength (233k vs 240k exp) in the labour market to further undo the sharp moves in the aftermath of last week’s unemployment report.
• USDJPY gapped higher on the release, rising from just above the 146.00 mark to print as high as 147.54, before drifting a lower into the close.
• The first topside level is at 147.90 before initial resistance is found at 149.77, the Aug 2 high. On the downside yesterday's lows were at 145.44. 141.70, the Aug 5 low is a more important support point though.
• The rise in US yields has helped stabilize US-JP yield differentials, while Fed easing expectations were also pared somewhat. The US equity bounce provided further ammunition for the market to re-engage in short yen positions against higher beta crosses.
• The local data calendar just has July money stock figures on tap today (not a market mover).