USD/JPY came into today's staggering 3.28mln jobless claims news already in retreat due to dollar selling and haven yen buying ahead of the release, but the response to the news has been subdued as many had expected it -- and more to come -- reducing the shock value nL1N2BJ0U7.
Whether the steadying of Treasury yields and post-claims bounce in S&Ps lasts will determine whether the USD/JPY reverses its 101.18-111.71 recovery with a close below it's uptrend line and 10-DMA at 109.50/45.
USD/JPY pierced those supports with a 109.38 low that held above last Friday's 109.35 low and Fibo supports by 109.20.
The broader issue remains the time it takes to control the coronavirus and ramp up employment again.
The longer it takes, the greater the risk that even the $2 trln backstopping bill Congress is wrapping up nL1N2BJ07L may fail to limit the damage.
Treasury's Mnuchin said direct deposits will take place within three weeks nW1N2BC03K and Fed's Powell reaffirmed the commitment to keep credit flowing and companies in business nN9N28J012.
But clear indications of a peak in infections and testing increases to determine who can safely go back to work nL1N2BI2UT are key to sustaining risk-on market trends and a higher USD/JPY.