USDJPY Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.18% | -26.9 Pips |  |
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| Week to-date | -0.23% | -34 Pips | |
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| December | -1.07% | -161.6 Pips | |
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Upcoming key events (London Time)
Wed 06:45 PM USD Federal Reserve Chair Jerome Powell speech
What happened lately
The U.S. Job Openings and Labor Turnover Survey (JOLTS) has shown an increase in job openings to 7.744 million in October, up from the revised figure of 7.372 million in September, according to the Bureau of Labor Statistics. This increase in job openings is a positive indicator of the U.S. labor market’s health, reflecting potential growth in employment opportunities. A higher number of job openings suggest that employers are optimistic about the economic outlook, willing to expand their workforce, and potentially leading to wage growth as companies compete for workers. This can have further effects on consumer spending and economic growth as people have more job opportunities and higher potential incomes.
The news of increasing job openings in the U.S. impacts the USDJPY currency pair. The USDJPY was observed to drop by 0.18% to 149.56 on Tuesday, signaling a slight depreciation of the USD against the JPY. The increase in job openings might strengthen the USD in the medium term as it signifies a strengthening U.S. economy, which could lead to expectations of interest rate hikes by the Federal Reserve. However, the drop in USDJPY could also be influenced by broader market factors or risk sentiment, wherein investors might be seeking safe-haven assets like the yen amidst potential uncertainties. The upcoming speech by Federal Reserve Chair Jerome Powell could further influence USDJPY as market participants might look for hints on the economic outlook and any changes in monetary policy. Overall, the immediate drop in USDJPY does not overshadow the longer-term impact a strong labor market might have on the USD, contingent upon future monetary policy indications and global market conditions.
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What can we expect from USDJPY today?
USDJPY on Tuesday dropped -0.18% to 149.56. 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 148.72 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 150.24 or trades above daily pivot 149.48. While to the downside, the daily low of 148.64 and 148.72 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 148.64 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:
| R3 | 151.91 |
| R2 | 151.07 |
| R1 | 150.32 |
| Daily Pivot | 149.48 |
| S1 | 148.72 |
| S2 | 147.88 |
| S3 | 147.13 |