USDJPY Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.21% | 31.7 Pips |  |
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| Week to-date | -0.94% | -140.9 Pips |  |
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| March | -0.94% | -140.9 Pips | |
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Upcoming key events (London Time)
Fri 01:30 PM USD Nonfarm Payroll Employment Fri 01:30 PM USD Average Hourly Earnings (12-mth) Fri 05:30 PM USD Federal Reserve Chair Jerome Powell speech
What happened lately
In the United States, nonfarm business labor productivity experienced an uptick, reaching 1.5% in the fourth quarter from a previous 1.2% in the third quarter. This data, released by the Bureau of Labor Statistics, suggests an improvement in workers’ efficiency and output during the period. Unit labor costs, on the other hand, decreased to 2.2% in the fourth quarter from 3% in the third quarter, indicating that employers may be seeing reduced wage pressures alongside productivity gains. Moreover, the Department of Labor reported a decrease in initial unemployment insurance claims to 221,000 for the week ending March 1, down from 242,000 in the prior period, highlighting a robust labor market. Additionally, new orders for manufactured goods showed a positive trend, rising by 1.7% in January after a revised decline of 0.6% in December, as per the Census Bureau. This shift suggests a rebound in manufacturing demand and may contribute positively to economic growth.
The recent economic developments in the U.S. could potentially have a significant impact on the USDJPY currency pair. The rise in labor productivity and decrease in labor costs might signal potential economic strengthening, which could support the U.S. dollar (USD). The decline in initial unemployment claims further underscores a strong economy, potentially fostering confidence in the USD. Meanwhile, the increase in new orders for manufactured goods could indicate a healthier manufacturing sector, which might also bolster the USD. As a result, these factors combined may exert upward pressure on the USDJPY pair. However, traders will be cautious ahead of Friday’s high-impact economic events, including nonfarm payroll employment data, average hourly earnings, and Federal Reserve Chair Jerome Powell’s speech. These events could introduce volatility and potentially alter the current outlook for the USDJPY pair depending on their outcomes. Overall, the strong economic signals from the U.S. could provide a supportive backdrop for the USD, affecting its movement against the Japanese Yen (JPY) in the coming days.
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What can we expect from USDJPY today?
USDJPY on Thursday rose 0.21% to 149.18. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 148.82 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 149.33 or trades above daily pivot 149.08. While to the downside, the daily low of 148.72 and 148.82 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A break above 149.33 would suggest bullish bias after recent positive movement.
For the week to-date, take note that USDJPY is mixed as compared to prior week.
Key levels to watch out:
| R3 | 150.05 |
| R2 | 149.69 |
| R1 | 149.44 |
| Daily Pivot | 149.08 |
| S1 | 148.82 |
| S2 | 148.46 |
| S3 | 148.21 |