USDJPY Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.3% | 45.1 Pips |  |
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| Week to-date | 1.69% | 253.2 Pips | |
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| December | 0.92% | 138.8 Pips |  |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
The United States’ economic indicators for November reveal a mixed picture. According to the Bureau of the Fiscal Service, the U.S. Monthly Treasury Budget Statement reported a significant increase in the deficit, rising from -$257 billion in October to -$367 billion in November. This growth in the budget deficit could point towards increased government spending or reduced revenues, impacting fiscal stability. In inflation metrics, the Bureau of Labor Statistics noted that the Consumer Price Index (CPI) inflation rate saw a slight increase from 0.2% in October to 0.3% in November, suggesting upward pressure on prices. Excluding food and energy, the CPI inflation rate remained stable at 0.3% for the month and at 3.3% on a 12-month basis. Additionally, the 12-month CPI inflation rate moved marginally higher to 2.7% from 2.6%. These inflation figures indicate a gradual rise without any alarmingly sharp increases, reflecting relatively contained inflationary pressures.
The recent economic news could impact the USDJPY currency pair. The rising budget deficit may exert downward pressure on the U.S. dollar, as it could lead to concerns about the country’s fiscal health. Conversely, the steady increase in inflation might prompt the Federal Reserve to consider future interest rate hikes to manage inflation, which can provide support to the dollar. On Thursday, the USDJPY currency pair rose by 0.3% to 152.57. This uptick suggests that market participants might presently be focusing more on inflation data, leading to speculation around Fed rate decisions. However, if the budget deficit continues to widen, it might result in volatility or weakness in the dollar against the yen. With no major upcoming economic events for the United States, the current data will likely serve as the primary basis for trading activities concerning USDJPY in the near term.
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What can we expect from USDJPY today?
USDJPY on Thursday rose 0.3% to 152.57. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDJPY looks bullish as the pair ended higher after Thursday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 152.96 with break above could target R2 at 153.36. While towards the downside, we are looking at daily low of 151.80 as an important support. Break below this level could weaken the current bullish momentum. A break above 152.77 would suggest bullish bias after recent positive movement.
For the week to-date, take note that USDJPY is bullish as the pair continued to trade higher and is up by 1.69% over the past few days.
Key levels to watch out:
| R3 | 153.94 |
| R2 | 153.36 |
| R1 | 152.96 |
| Daily Pivot | 152.38 |
| S1 | 151.98 |
| S2 | 151.4 |
| S3 | 151.01 |