USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.26% | -39.801 Pips |  |
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| Week to-date | -0.27% | -40.4 Pips | |
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| February | -1.73% | -266.1 Pips |  |
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Upcoming key events (London Time)
Wed 07:00 PM USD FOMC Meeting Minutes
What happened lately
The US economy is anticipating the release of the Federal Open Market Committee (FOMC) Meeting Minutes, scheduled for Wednesday at 07:00 PM. This release is categorized as a high-impact event and is expected to provide insights into the Federal Reserve’s outlook on monetary policy, inflation, and economic growth. Market participants typically scrutinize the minutes to gauge future interest rate directions and any potential policy shifts that could influence the US economy.
While there are no current major economic news updates from Japan, investors are likely monitoring global economic conditions and policy announcements to assess the economic landscape. These factors can play a significant role in shaping market sentiment and influencing the strength of the yen in the currency market. With no immediate domestic data releases, the focus may remain on external developments.
Regarding the USDJPY currency pair, Monday’s drop of 0.26% to 151.44 reflects a slight weakening of the US dollar against the Japanese yen. The upcoming FOMC meeting minutes could potentially exert more influence on the pair’s movement if the minutes reveal a dovish stance or signal a halt in interest rate hikes, which could further weaken the dollar. Conversely, a hawkish tone suggesting continued tightening could bolster the dollar. As investors position themselves ahead of the minutes, we might observe increased volatility in the USDJPY pair. The absence of significant instant news from Japan leaves the yen’s movement largely at the mercy of the USD’s performance and broader market risk sentiment.
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What can we expect from USDJPY today?
USDJPY on Monday dropped -0.26% to 151.44. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks bearish as the pair posted lower in Monday trading session.
Looking ahead for the day, immediate support level is at 151.14 (S1) with break below could see further selling pressure towards 150.84 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 152.11 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 151.33 would indicate selling pressure.
For the week to-date, take note that USDJPY is bearish as the pair posted lower by -0.27%.
Key levels to watch out:
| R3 | 152.71 |
| R2 | 152.41 |
| R1 | 151.92 |
| Daily Pivot | 151.63 |
| S1 | 151.14 |
| S2 | 150.84 |
| S3 | 150.36 |