USDJPY Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.03% | 4.7 Pips |  |
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| Week to-date | 0.16% | 24.8 Pips | |
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| October | 6.6% | 948.999 Pips | |
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Upcoming key events (London Time)
Wed 12:30 PM USD GDP annual rate
Thu 03:00 AM JPY Bank of Japan Short-Term Policy Interest Rate Thu 12:30 PM USD PCE Price Index, excluding food and energy (12-mth)
What happened lately
Japan’s unemployment rate experienced a slight decline, dropping to 2.4% in September from 2.5% in August, as reported by the Statistics Bureau of Japan. This decrease indicates a strengthening labor market and suggests potential improvements in consumer spending and overall economic health, as more people are employed. Typically, a lower unemployment rate could lead to increased consumer confidence and demand, potentially driving economic growth. The reduction in unemployment is a positive signal for Japan’s economy, which may influence future economic policies and interest rate decisions by the Bank of Japan.
In the United States, key events are expected that might impact the financial markets. The upcoming high-impact event includes the GDP annual rate release scheduled for Wednesday, followed by the PCE Price Index, excluding food and energy, on Thursday. These events are crucial as they provide insights into the economic performance and inflation trends in the US, influencing the Federal Reserve’s monetary policy.
The USDJPY pair rose slightly by 0.03% to 153.19, indicating a period of consolidation in the market. The upcoming economic data releases in Japan and the US are likely to influence the currency pair. A stronger-than-expected GDP growth in the US could bolster the US dollar, potentially causing the USDJPY to rise further. Conversely, if the Bank of Japan hints at a shift in its monetary stance or if the unemployment rate figures create an increasingly positive economic outlook, the Japanese yen might gain strength, potentially leading to a decline in the USDJPY value. Thus, traders should closely monitor the upcoming economic releases and central bank decisions for cues on the future direction of the USDJPY.
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What can we expect from USDJPY today?
USDJPY on Tuesday rose 0.03% to 153.19. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 152.67 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 153.87 or trades above daily pivot 153.27. While to the downside, the daily low of 152.75 and 152.67 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A break above 153.87 would suggest bullish bias after recent positive movement.
For the week to-date, take note that USDJPY is mixed as compared to prior week.
Key levels to watch out:
| R3 | 154.9 |
| R2 | 154.39 |
| R1 | 153.79 |
| Daily Pivot | 153.27 |
| S1 | 152.67 |
| S2 | 152.15 |
| S3 | 151.56 |