The US Dollar has been set to end this week by its risk appetite and the U.S. market is moving in its path of shifting to the Federal Reserve meeting. The Labor Department said on yesterday that the total number of initial claims for unemployment insurance for the week ended July 17 was 419,000, higher than the 350,000 Dow Jones estimate and 368,000 revised from the previous period. Unemployment as a whole is the highest weekly figure since May 15, and the rise in unemployment benefits has come amid expectations that the jobs picture will improve significantly and companies are becoming more aggressive in filling vacancies.

On the positive side, the number of consecutive claims running a week behind the title number has dropped from 29,000 to 3.24 million, a new pandemic era. Following the announcement of the Covid-19 infection, the total was lower on March 14, 2020, and the U.S. More than 22 million people were sent to the unemployment line as governments across the state ordered businesses to close. The total of those receiving benefits under all government programs also declined, falling by more than 1.2 million to 12.57 million. A year ago, nearly 33 million people were collecting benefits.

The job site Indeed estimates there were about 9.8 million jobs as of July 16. This compares with 9.48 million workers, who the Labor Department estimated was unemployed in June,  indicating plenty of opportunity for aggressive hiring ahead. During the April-June period, 60,502 businesses reopened, the highest level in the past year, according to Yelp. That total reopened at 38,725 in April, the fastest monthly pace since May 2020.

On the other hand, Japanese Prime Minister Yoshihide Suka acknowledged that the Tokyo Olympics were a struggle to sell to the people of his country, many of whom feared that the arrival of athletes from around the world would trigger the Covid-19 crisis. But in an exclusive interview with NBC News, he stressed that the Summer Olympics will open on Friday as planned and that in the end it will be a success. Recent polls, including one published this week by The Asahi Shimbun, a national newspaper, have suggested that as much as 70 percent of the Japanese public wants the Games canceled or postponed amid a surge in Covid cases in the country.

USD/JPY 4 Hour Chart:

Support: 109.99 (S1), 109.82 (S2), 109.64 (S3).

Resistance: 110.33 (R1), 110.52 (R2), 110.68 (R3).

Amidst all the previalling catalysts, we expect bullish trend for USD/JPY.