USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.03% | -5.5 Pips |  |
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| Week to-date | 0.02% | 3.6 Pips |  |
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| January | 0.4% | 62.501 Pips | |
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Upcoming key events (London Time)
Wed 07:00 PM USD FOMC Meeting Minutes
What happened lately
In the United States, the economic data released by the Census Bureau reveals that new orders for manufactured goods decreased by 0.4% in November. This decline follows a previously revised increase in October, where new orders rose by 0.5%, adjusted from an initial report of a 0.2% increase. The decrease in new orders might reflect a growing caution among manufacturers and a potential weakening in demand as the year progresses. Such data can hint at potential headwinds for the manufacturing sector and implications for broader economic activity if the trend continues.
Regarding the USDJPY currency pair, the pair saw a slight decline of 0.03% to 157.59 on Monday, which indicates that the market is in a period of consolidation. This small movement suggests that traders could be cautious ahead of significant upcoming economic events, such as the release of the Federal Open Market Committee (FOMC) Meeting Minutes scheduled for Wednesday at 7:00 PM USD time. The release of these minutes is highly anticipated as it could provide insights into the future monetary policy stance of the Federal Reserve. Market participants will be closely watching for any indications of future interest rate adjustments or changes in economic assessments, which could influence the USDJPY exchange rate. A more dovish or cautious Federal Reserve would typically put downward pressure on the USD, potentially leading to a depreciation of the USDJPY pair. Conversely, a hawkish stance, indicating the likelihood of future rate hikes, might bolster the USD, strengthening the USDJPY pair.
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What can we expect from USDJPY today?
USDJPY on Monday dropped -0.03% to 157.59. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 156.57 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 157.96 or trades above daily pivot 157.26. While to the downside, the daily low of 156.24 and 156.57 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 156.24 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 | 160.02 |
| R2 | 158.99 |
| R1 | 158.29 |
| Daily Pivot | 157.26 |
| S1 | 156.57 |
| S2 | 155.54 |
| S3 | 154.84 |