USDJPY Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 0.37% | 52.8 Pips |  |
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| Week to-date | 2% | 285.8 Pips |  |
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| May | 1.72% | 245.8 Pips | |
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Upcoming key events (London Time)
Thu 01:30 PM USD GDP annual rate
Fri 12:30 AM JPY Tokyo CPI (Inflation Rate) (12-mth) Fri 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
What happened lately
Recent economic data from the United States highlights a mixed performance in various sectors. The U.S. witnessed a slight decline in the House Price Index in March 2025, which fell to -0.1% from February’s 0.1%, indicating a softening in the real estate market. In the manufacturing sector, while Durable Goods Orders excluding Transportation showed signs of recovery with a 0.2% increase in April 2025 from a revised -0.2% in March, other areas within the durable goods category presented challenges. Notably, Durable Goods – New Orders experienced a significant decrease of 6.3% in April, following previously revised figures of 7.6% in March. Additionally, Nondefense Capital Goods Orders excluding Aircraft dropped significantly to -1.3% from March’s revised 0.3%, and Durable Goods Orders excluding Defense also slumped to -7.5% from a revised 10.5%. This overall downtrend in orders reflects underlying weaknesses in the demand for durable goods, potentially signaling broader economic uncertainties.
The USDJPY currency pair’s movement, which rose by 0.37% to 144.79, might have been influenced by the mixed U.S. data. A falling demand in durable goods typically points to a slow down in manufacturing, affecting investor sentiment negatively. However, the anticipation of high-impact U.S. economic indicators like the upcoming GDP annual rate release might have provided some buoyancy to the USD. Such expectations can lead market participants to position themselves accordingly, awaiting potentially market-moving outcomes. Meanwhile, Japan’s upcoming Tokyo CPI data is keenly watched as inflationary trends have significant implications for monetary policy. As a result, given current economic uncertainties and upcoming significant economic announcements, volatility in the USDJPY pair can be expected as traders react to the evolving economic data and policy signals from both nations.
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What can we expect from USDJPY today?
USDJPY on Wednesday rose 0.37% to 144.79. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDJPY looks bullish as the pair ended higher after Wednesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 145.3 with break above could target R2 at 145.8. While towards the downside, we are looking at daily low of 143.85 as an important support. Break below this level could weaken the current bullish momentum. A break above 145.08 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 | 146.53 |
| R2 | 145.8 |
| R1 | 145.3 |
| Daily Pivot | 144.57 |
| S1 | 144.07 |
| S2 | 143.34 |
| S3 | 142.84 |