USDJPY Holding At Key Support Ahead of US Data Dump

US Data on DeckLooking ahead today we have plenty of important US data on deck which should offer volatility across FX and equities markets. Weekly unemployment claims, the Philly Fed manufacturing index and existing home sales will all be on watch across today’s US session. Yesterday, USD moved higher, despite weaker-than-forecast housing starts data due to a shift in central bank expectations.Shifting Central Bank ExpectationsWith the market scaling back its hawkish BOE expectations on the back of the recent UK inflation drop, and with many other central banks having returned to a pause, peak Fed rates have lost a little relevancy as a focus point for traders. Additionally, there have been reports that the ECB is likely to soften the tone of its hawkish guidance next week in line with cooling inflation. With divergence narrowing in terms of the market’s monetary policy expectations for each central bank, USD is finding better support again. Looking ahead today, any data strength should help continue this narrative into the end of the week.Technical ViewsUSDJPYThe correction from 145 has seen the market falling heavily back down to 138 support. Price is currently stalled here and, given the broader bull channel, while this support holds a further rotation higher is still in focus with 142.21 the first objective for bulls. To the downside, should we break current support, the bull channel lows will be first focus ahead of deeper support at 132.91.