USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.94% | -135 Pips |  |
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| Week to-date | -1.05% | -151.6 Pips |  |
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| June | -1.05% | -151.6 Pips | |
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Upcoming key events (London Time)
Tue 08:50 AM JPY Bank of Japan Governor Kazuo Ueda speech
What happened lately
In Japan, an upcoming significant event is scheduled for Tuesday. Bank of Japan Governor Kazuo Ueda is expected to deliver a speech at 08:50 AM local time. The market often scrutinizes such addresses for any indications of shifts in monetary policy or economic forecasts, given the Bank of Japan’s influential role in shaping the country’s economic landscape. Although no major economic news has been reported recently, the anticipation around Governor Ueda’s address could suggest potential market movements depending on his statements’ tone and content.
In recent trading, USDJPY experienced a notable change as the pair dropped by 0.94% to 142.67. This decline came amidst a lack of major economic news, hinting that forthcoming economic events or market sentiment shifts might influence traders’ decisions. The drop in USDJPY suggests that market participants might be positioning themselves for potential developments or statements from key economic figures, such as Governor Ueda.
The depreciation of the USDJPY could be attributed to expectations of Governor Ueda touching upon Japan’s economic conditions or policy approach in his upcoming speech. Should his speech hint at an impending policy adjustment or provide defense for maintaining Japan’s current economic course, the yen might further strengthen against the dollar. Moreover, traders will likely be on the lookout for any nuanced language concerning inflation, employment, or growth projections that could sway the yen’s direction further. Consequently, USDJPY may continue to face volatility as the market awaits clarification from significant economic dialogue or tangible economic data post-Governor Ueda’s commentary.
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What can we expect from USDJPY today?
USDJPY on Monday dropped -0.94% to 142.67. Price is below 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 142.14 (S1) with break below could see further selling pressure towards 141.61 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 143.99 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 142.53 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 | 145.04 |
| R2 | 144.51 |
| R1 | 143.59 |
| Daily Pivot | 143.06 |
| S1 | 142.14 |
| S2 | 141.61 |
| S3 | 140.69 |