USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.84% | -121.8 Pips |  |
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| Week to-date | -0.85% | -122.8 Pips |  |
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| May | 0.52% | 74 Pips |  |
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Upcoming key events (London Time)
Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
What happened lately
Currently, there is a lack of major economic news impacting the United States and Japan. The absence of significant economic data releases suggests a stable period for markets, where investment decisions are primarily driven by existing market trends and expectations rather than new information. The economic environment remains influenced by anticipated policy changes and broader geopolitical scenarios rather than immediate economic indicators.
On Monday, the USDJPY exchange rate fell by 0.84% to a level of 143.70. This decline reflects market dynamics that may include reactions to current global sentiment or anticipations of upcoming economic events rather than immediate economic news. The upcoming Federal Reserve interest rate decision is a key event expected to impact this currency pair. The Fed’s decision on the Federal Funds Rate could be a crucial determinant of USD strength. If the Fed opts for a rate hike, it could lead to USD strengthening due to higher yield expectations attracting foreign capital. Conversely, if the Fed maintains or lowers rates, it could result in a weaker USD, making investments in Japan more attractive, potentially leading to a decrease in USDJPY. The market’s response to these decisions, along with any accompanying forward guidance or economic forecasts, could generate significant fluctuations in exchange rates.
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What can we expect from USDJPY today?
USDJPY on Monday dropped -0.84% to 143.70. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks bearish as the pair posted lower in Monday trading session.
Looking ahead for the day, immediate support level is at 143.16 (S1) with break below could see further selling pressure towards 142.62 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 144.99 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 143.53 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 | 146.07 |
| R2 | 145.53 |
| R1 | 144.61 |
| Daily Pivot | 144.07 |
| S1 | 143.16 |
| S2 | 142.62 |
| S3 | 141.71 |