USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.37% | -52.7 Pips |  |
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| Week to-date | -0.27% | -39 Pips | |
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| April | -4.55% | -681.9 Pips | |
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Upcoming key events (London Time)
Wed 01:30 PM USD Monthly Retail Trade (1-mth)
What happened lately
The USDJPY currency pair experienced a decline of 0.37% on Monday, settling at 142.96. This drop indicates a period of consolidation for the pair, suggesting that traders might be exercising caution and awaiting further developments before committing to significant positions. Despite the absence of major economic news, attention is now turning towards the upcoming release of US retail sales data. Scheduled to be published on Wednesday at 1:30 PM USD time, this high-impact event could potentially bring volatility to the currency markets, depending on how the actual figures compare to market expectations.
When analyzing the potential impact of the US retail sales data on USDJPY, it is essential to consider that retail sales are a critical indicator of consumer spending and overall economic health. Strong retail sales figures may boost confidence in the US economy, leading to positive sentiment towards the US dollar. Conversely, weaker-than-expected retail sales could result in a negative outlook and a weaker dollar. As such, traders and investors will be closely monitoring the data release to gauge the future movements of the USDJPY pair. Should the data deviate significantly from market forecasts, it could trigger price adjustments and alter trader sentiment. Thus, the release of the US retail sales data holds the potential to break the current consolidation pattern of USDJPY, leading to increased trading activity and possible directional shifts in the currency pair.
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What can we expect from USDJPY today?
USDJPY on Monday dropped -0.37% to 142.96. 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 142.1 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 144.08 or trades above daily pivot 143.09. While to the downside, the daily low of 142.23 and 142.1 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 142.23 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:
| R3 | 145.81 |
| R2 | 144.94 |
| R1 | 143.95 |
| Daily Pivot | 143.09 |
| S1 | 142.1 |
| S2 | 141.24 |
| S3 | 140.25 |