USDJPY Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.14% | 20.6 Pips |  |
||
| Week to-date | -0.18% | -25.8 Pips |  |
||
| April | -4.46% | -668.7 Pips | |
||
Upcoming key events (London Time)
Wed 01:30 PM USD Monthly Retail Trade (1-mth)
What happened lately
In the United States, the New York Empire State Manufacturing Index saw an improvement in April, rising to -8.1 points from the previous -20 points in March. This rise, while still indicating contraction, suggests that the manufacturing sector’s decline is moderating. The index, reported by the New York Federal Reserve, serves as a key indicator of economic health in the manufacturing industry within New York State. The improvement can be seen as a positive signal for the broader U.S. economy, potentially reflecting a stabilizing economic environment after a period of lower activity levels. Upcoming economic events, like the USD Monthly Retail Trade report, could further provide insights into consumer spending and overall economic conditions in the U.S.
The USDJPY currency pair increased by 0.14% to 143.17 on Tuesday, suggesting that the U.S. dollar has strengthened slightly against the Japanese yen. The pair currently remains in a state of consolidation, indicating that there may not be a strong trend in either direction for now. The improvement in the New York Empire State Manufacturing Index, albeit from contractionary levels, could contribute to a slight strengthening of the U.S. dollar, as it demonstrates some easing of economic pressures in a significant sector. However, traders may be awaiting the release of the upcoming U.S. Retail Sales data for more definitive economic signals. A strong performance in this area could potentially bolster confidence in the U.S. economy, leading to further appreciation of the USD against the JPY.
Latest from X (Twitter)
What can we expect from USDJPY today?
USDJPY on Tuesday rose 0.14% to 143.17. Price is below 9-Day EMA while Stochastic is rising in oversold zone.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 142.64 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 143.59 or trades above daily pivot 143.12. While to the downside, the daily low of 142.59 and 142.64 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A break above 143.59 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 | 144.65 |
| R2 | 144.12 |
| R1 | 143.64 |
| Daily Pivot | 143.12 |
| S1 | 142.64 |
| S2 | 142.12 |
| S3 | 141.64 |