Meanwhile, the number of initial jobless claims across the country dropped to a seasonally adjusted 294,000 in the week ended December 5, compared with 297,000 seen in the prior week. The four-week moving average of claims, considered a better gauge of labour market trends as it strips out weekly volatility, rose by 250 to 299,250, staying below the 300,000 mark for the 13th consecutive month.
Meanwhile in Japan, April's sales tax increase continues weighing on consumer sentiment in Japan, as Cabinet Office survey revealed confidence among households fell for a fourth consecutive month in November. The sentiment index, which includes views on jobs and incomes, came in at 37.7, the lowest level since April and down from 38.9 in October. The index measuring employment levels declined by 1.9 points to 42.8 in November and the "willingness to buy durable goods" index fell 1.1 points to 35.4.
Elections in Japan
The first three days of the week were relativvely calm; however, the weekend is coming and this will be relatively loud weekend since Lower House Elections in Japan are taking the stand. Nevertheless, it is more or less clear that Japanese Prime Minister Shinzo Abe is likely to remain in his position. However, today we will be seing the releases of US PPI and preliminary UoM inflation expectations.USD/JPY hovers around 119
At the first half of the year USD/JPY was trading almost completely flat, as it traded around the 102 level. However, at the second part of August the Greenback started to outperform the Japanese peer rather heavily. Recently, the pair breached the 120 mark and for the time being it remains a target for the pair's bulls since the Greenback has slipped below it. Nonetheless, if traders' fail to breach this substantial level then it is liekly to trade around 118/119 levels.Daily chart
The Greenback has managed to reverse some of the recent losses that it faced against the Japanese Yen; however, there is a very low possibility of the pair setting weekly gains. Moreover, the technical levels remain more to the upside, especially the daily ones and that could mean that the pair's bulls are ready to form another attack towards the psychological leve at 120.
Hourly chart