Usdjpy sees slight decline as mixed economic data impacts investor sentiment

USDJPY Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.16%	-25.101 Pips
Week to-date	0.32%	50.6 Pips
January	0.63%	99.201 Pips

Upcoming key events (London Time)

Wed 07:00 PM USD FOMC Meeting Minutes

What happened lately

In the United States, the latest economic data reveals mixed signals. According to the Bureau of Labor Statistics, the Job Openings and Labor Turnover Survey (JOLTS) for November reports a significant increase in job openings to 8.098 million. This is up from the revised figure of 7.744 million in October, which was initially recorded at 7.839 million. This increase in job openings suggests a robust labor market, indicating a demand for more labor, which can be an indicator of economic strength.

However, contrasting with the labor market data, the Census Bureau reports a decline in U.S. new orders for manufactured goods in November by 0.4%. This follows an upward revision of October’s increase from 0.2% to 0.5%. The decline in manufacturing orders may suggest a potential cooling in industrial activity, perhaps reflective of changing economic conditions or external factors influencing the demand for manufactured goods.

The current fluctuation in economic indicators has also had an impact on the USDJPY exchange rate, which decreased by 0.16% to 157.99 as of Tuesday. The pair is reported to be in a state of consolidation, indicating that traders are perhaps waiting for more information before taking strong positions. Upcoming events such as the Federal Open Market Committee (FOMC) Meeting Minutes may provide further clarity on monetary policy direction. The mixed U.S. economic data, with strong labor market numbers contrasting with weaker manufacturing orders, can lead to fluctuations in investor sentiment regarding the U.S. economy. This may affect the USD’s strength, causing volatility in currency pairs such as USDJPY. In anticipation of the FOMC Meeting Minutes, traders may tread cautiously, as upcoming monetary policy insights could potentially shift market dynamics, influencing the currency exchange rates further.

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What can we expect from USDJPY today?

USDJPY on Tuesday dropped -0.16% to 157.99. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 157.42 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 158.43 or trades above daily pivot 157.93. While to the downside, the daily low of 157.36 and 157.42 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 157.36 would indicate selling pressure.

For the week to-date, take note that USDJPY is bullish as the pair continued to trade higher and is up by 0.32% over the past few days.

Key levels to watch out: