USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.13% | 19 Pips |  |
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| Week to-date | 0.11% | 15.7 Pips | |
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| May | -0.17% | -24.3 Pips |  |
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Upcoming key events (London Time)
Tue 01:00 AM JPY Bank of Japan Governor Kazuo Ueda speech
Wed 07:00 PM USD FOMC Meeting Minutes
What happened lately
In Japan, a high-impact event is scheduled with Bank of Japan Governor Kazuo Ueda set to deliver a speech. This holds significance as market participants will be closely monitoring any changes in tone or policy direction that could impact the Japanese yen. Any hints from Governor Ueda regarding future monetary policy adjustments or economic outlook could lead to fluctuations in the currency markets. As the Bank of Japan has maintained a dovish stance in recent times, even subtle shifts in rhetoric could influence investor sentiment towards the yen.
In the United States, another important event is the scheduled release of the FOMC Meeting Minutes. This high-impact event is slated for release on Wednesday evening. The minutes will provide deeper insights into the Federal Reserve’s perspectives on the economy, inflation, and interest rates. Investors are eager to analyze any discussion concerning future rate hikes or economic assessments, which could significantly influence the U.S. dollar’s strength. Given the current global economic environment, any indications of a more hawkish approach could boost the dollar, while dovish signals could put downward pressure on it.
For the USDJPY pair, Monday’s rise of 0.13% to 142.74 suggests a consolidation phase for the pair. Investors appear to be assessing upcoming economic disclosures from both Japan and the U.S. The potential impacts on USDJPY hinge on how the markets interpret the implications of the Bank of Japan Governor’s speech and the FOMC Meeting Minutes. An insight indicating some hawkishness in the U.S. could strengthen the dollar, thereby leading to a rise in the USDJPY pair. Conversely, a dovish stance from the Federal Reserve or a surprisingly hawkish tone from the Bank of Japan might exert downward pressure on the pair. In this consolidation phase, traders are likely avoiding large bets until more precise information on economic policy emerges from the upcoming speeches and minutes.
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What can we expect from USDJPY today?
USDJPY on Monday rose 0.13% to 142.74. 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 142.28 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 143.08 or trades above daily pivot 142.68. While to the downside, the daily low of 142.22 and 142.28 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A break above 143.08 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 |
| R2 | 143.54 |
| R1 | 143.14 |
| Daily Pivot | 142.68 |
| S1 | 142.28 |
| S2 | 141.82 |
| S3 | 141.42 |