Usdjpy stable at 151.89 amid manufacturing sector resilience and election uncertainty

USDJPY Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0%	-0.2 Pips
Week to-date	0.03%	5.001 Pips
November	-0.06%	-8.6 Pips

Upcoming key events (London Time)

Tue 12:00 AM USD Presidential Election

What happened lately

The United States saw a modest improvement in its manufacturing sector in September, reflected in the slight ease of decline in new orders for manufactured goods. According to the Census Bureau, the new orders for manufactured goods changed from a revised decrease of 0.8% in August to a lesser decline of 0.5% in September. This minor improvement suggests that the manufacturing sector is experiencing some resilience, although it is still facing challenges as indicated by the negative growth rate. The persistence of this downward trend, despite slight amelioration, highlights ongoing concerns about supply chain disruptions and inflationary pressures that continue to affect industrial output in the U.S.

The USDJPY currency pair remained unchanged at 151.89 on Monday, indicating a period of consolidation. This stagnation reflects uncertainty in the market given the approaching significant political event – the U.S. Presidential Election. Scheduled for midnight, this event is marked with a high impact indicator. Typically, major political events in the U.S. can have profound effects on currency pairs like USDJPY due to potential policy shifts, changes in investor sentiment, and the resultant volatility in financial markets.

With the U.S. dollar holding steady against the Japanese yen, the market appears to be in a waiting mode. Investors may be cautious, anticipating potential movements that could arise after the election results are clearer. A significant victory by any candidate could bring about various economic policies that might strengthen or weaken the U.S. dollar, consequently affecting the USDJPY pair. Should the election result in policies deemed favorable for economic growth and inflation control, the USD might gain strength, leading to an increase in the USDJPY. Conversely, uncertainties resulting from the elections or policies viewed negatively by investors could weaken the dollar, resulting in a decrease of this currency pair.

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What can we expect from USDJPY today?

USDJPY on Monday dropped 0% to 151.89. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 151.55 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 152.32 or trades above daily pivot 151.94. While to the downside, the daily low of 151.59 and 151.55 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 151.59 would indicate selling pressure.

For the week to-date, take note that USDJPY is mixed as compared to prior week.

Key levels to watch out: