Usdjpy falls 0.82% as housing prices remain steady, influencing currency markets

USDJPY Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.82%	-122.6 Pips
Week to-date	-0.23%	-34.399 Pips
February	-3.28%	-505.4 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD GDP annual rate

What happened lately

In December, the U.S. House Price Index stayed constant at 0.4% compared to November, as reported by the Federal Housing Finance Agency (FHFA). This stability in housing prices suggests a steady real estate market in the United States during this period, indicating neither significant growth nor decline in housing values. The housing market’s performance is a key indicator of consumer confidence and economic health, as it directly impacts household wealth and spending behaviors.

The recent drop of -0.82% in the USDJPY to 149.03 on Tuesday suggests a depreciation of the U.S. dollar against the Japanese yen. This movement could be attributed to market reactions to various economic data, such as the unchanged U.S. House Price Index, which might have fueled concerns about the U.S. economic momentum and consumer strength. The exchange rate can be influenced by several factors, including monetary policy expectations, geopolitical events, and upcoming data releases.

Looking ahead, the upcoming release of the U.S. GDP annual rate at 1:30 PM on Thursday is a high-impact event that could further influence the USDJPY pair. A stronger-than-expected GDP growth figure could boost investor confidence in the U.S. economy, potentially leading to a strengthening of the dollar against the yen. Conversely, if the GDP growth falls short of expectations, it might lead to further depreciation of the dollar as investors seek safer havens or currencies perceived as more stable during economic uncertainty. Overall, while the current trend shows a decline, future movements in the USDJPY pair will largely depend on upcoming economic data and market sentiment.

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What can we expect from USDJPY today?

USDJPY on Tuesday dropped -0.82% to 149.03. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for USDJPY looks bearish as the pair posted lower in Tuesday trading session.

Looking ahead for the day, immediate support level is at 148.29 (S1) with break below could see further selling pressure towards 147.56 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 150.30 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 148.56 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: