USDJPY rises 0.44% as U.S. economic data shows positive trends

USDJPY Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	0.44%	65.7 Pips
Week to-date	-2.37%	-365.3 Pips
December	-0.45%	-68.1 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment

What happened lately

In the United States, the latest economic data reveals some positive trends. According to the Census Bureau, new orders for manufactured goods saw a modest increase of 0.2% in October. This uptick comes as a relief after a revised decline of -0.2% in the previous month, indicating a recovery in manufacturing activity and potentially reflecting stronger demand and improved economic conditions. Additionally, the U.S. labor market is showing signs of strength, as reported by the Bureau of Labor Statistics. The Job Openings and Labor Turnover Survey (JOLTS) highlighted a rise in job openings, which surged to 7.744 million in October from a revised 7.372 million in September. This increase suggests that employers are more willing to hire, reflecting confidence in economic stability and growth.

The current economic data from the U.S. has implications for the USDJPY currency pair. On Wednesday, the USDJPY climbed by 0.44% to reach 150.48, an indication that the U.S. dollar strengthened against the Japanese yen. The rise in new orders for manufactured goods, combined with increased job openings, paints a picture of a burgeoning U.S. economy. As these positive indicators boost investor confidence, there is a tendency for capital inflows into the U.S., thereby strengthening the dollar. This appreciation of the dollar, in turn, drives the USDJPY exchange rate upwards. Furthermore, market participants might be anticipating upcoming high-impact U.S. data, such as the Nonfarm Payroll Employment report, which could further influence the currency pair’s direction. This key jobs report, scheduled for release shortly, has the potential to either reinforce the dollar’s gains or cause a shift depending on how the figures align with market expectations.

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What can we expect from USDJPY today?

USDJPY on Wednesday rose 0.44% to 150.48. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for USDJPY looks bullish as the pair ended higher after Wednesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 151.3 with break above could target R2 at 152.12. While towards the downside, we are looking at daily low of 149.51 as an important support. Break below this level could weaken the current bullish momentum. A break above 151.23 would suggest bullish bias after recent positive movement.

For the week to-date, take note that USDJPY is bearish as the pair posted lower by -2.37%.

Key levels to watch out: