USDJPY Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.42% | 65.1 Pips |  |
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| Week to-date | 1.06% | 161.399 Pips |  |
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| November | 1.67% | 253.8 Pips | |
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Upcoming key events (London Time)
Wed 01:30 PM USD CPI Inflation Rate (12-mth) Thu 01:30 PM USD PPI excluding Food and Energy sectors (12-mth) Thu 08:00 PM USD Federal Reserve Chair Jerome Powell speech
What happened lately
The economic landscape does not feature any major news releases currently. However, it is important to keep an eye on upcoming high-impact events in the United States, which may influence the economic sentiment and market dynamics. On Wednesday, at 01:30 PM, the United States will release its Consumer Price Index (CPI) Inflation Rate, measured over a twelve-month period. This indicator will help assess inflationary pressures in the U.S. economy. Following this, on Thursday at the same time, the U.S. will announce the Producer Price Index (PPI) excluding food and energy sectors, which provides insights into the production level price changes. Additionally, on Thursday evening at 08:00 PM, Jerome Powell, the Chair of the Federal Reserve, will address the public, and his speech is highly anticipated for potential monetary policy cues.
For the currency markets, these reports and events are significant as they could impact the USDJPY exchange rate. The USDJPY was reported to have risen by 0.42% last Tuesday, reaching a level of 154.52. The upcoming U.S. inflation data, both CPI, and PPI, are crucial because they will influence market expectations about future interest rate adjustments by the Federal Reserve. A higher than expected inflation rate could lead to a stronger U.S. Dollar, as it might increase the likelihood of further rate hikes. Conversely, if inflation is lower than anticipated, it could weaken the dollar. Jerome Powell’s speech will be closely watched for any hints regarding the Fed’s policy direction. If Powell strikes a hawkish tone, it could boost the USD, further impacting the USDJPY by potentially pushing it higher. Conversely, a dovish stance might lead to a decline in favor of the Japanese yen. Therefore, the market participants and traders will need to be attentive to the unfolding economic updates and the Fed Chair’s insights to gauge the future trajectory of the USDJPY pair.
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What can we expect from USDJPY today?
USDJPY on Tuesday rose 0.42% to 154.52. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDJPY looks bullish as the pair ended higher after Tuesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 155.16 with break above could target R2 at 155.8. While towards the downside, we are looking at daily low of 153.40 as an important support. Break below this level could weaken the current bullish momentum. A break above 154.93 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 | 156.68 |
| R2 | 155.8 |
| R1 | 155.16 |
| Daily Pivot | 154.28 |
| S1 | 153.64 |
| S2 | 152.76 |
| S3 | 152.12 |