USDJPY Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.21% | -30.7 Pips |  |
||
| Week to-date | -0.86% | -127.1 Pips |  |
||
| March | -2.52% | -379.8 Pips | |
||
Upcoming key events (London Time)
Wed 12:30 PM USD CPI Inflation Rate (12-mth) Thu 12:30 PM USD PPI excluding Food and Energy sectors (12-mth)
What happened lately
In the United States, January’s Job Openings and Labor Turnover Survey (JOLTS) shows a rise in job openings to 7.74 million, up from a revised 7.508 million in December. This increase suggests a robust labor market, with more opportunities becoming available for job seekers. The positive job data reflects a steady demand for labor despite broader economic challenges, affirming that businesses are looking to expand or fill positions. Such figures reinforce confidence in the U.S. economy’s ability to grow and support a strong job market.
In Japan, economic indicators for the fourth quarter depict mixed results. The GDP Deflator over the year increased slightly to 2.9% from 2.8% in the third quarter, indicating some inflationary pressures in the economy. However, Japan’s GDP for Q4 showed a slowdown, with annual growth revising downward to 2.2% from 2.8% in Q3. In terms of quarterly performance, GDP growth decreased to 0.6% from 0.7%. These figures suggest that the Japanese economy might be facing challenges in maintaining its growth momentum, potentially affected by both domestic and global economic factors.
The current economic data is likely to have a nuanced impact on the USDJPY currency pair. The strengthening U.S. job market could support the U.S. dollar, potentially providing upward pressure on the pair. However, the recent drop in USDJPY suggests caution among investors, possibly due to anticipated data releases, including the upcoming U.S. CPI inflation rate and PPI excluding food and energy sectors. If these U.S. inflation data show stronger-than-expected figures, it might lead to higher expectations of Federal Reserve tightening, thus strengthening the USD against the JPY. Conversely, any signs of cooling inflation or deteriorating economic conditions could weaken the USD, further influencing the USDJPY pair’s consolidation trend.
Latest from X (Twitter)
What can we expect from USDJPY today?
USDJPY on Tuesday dropped -0.21% to 146.84. Price is below 9-Day EMA while Stochastic is falling in oversold zone.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 146.68 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 147.17 or trades above daily pivot 146.93. While to the downside, the daily low of 146.77 and 146.68 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 146.77 would indicate selling pressure.
For the week to-date, take note that USDJPY is bearish as the pair posted lower by -0.86%.
Key levels to watch out:
| R3 | 147.5 |
| R2 | 147.34 |
| R1 | 147.09 |
| Daily Pivot | 146.93 |
| S1 | 146.68 |
| S2 | 146.52 |
| S3 | 146.27 |