USDJPY Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | -0.84% | -120.7 Pips |  |
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| Week to-date | -0.95% | -136.7 Pips | |
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| June | -0.95% | -136.7 Pips | |
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Upcoming key events (London Time)
Fri 01:30 PM USD Nonfarm Payroll Employment
What happened lately
In April 2025, Japan’s Monthly Labour Survey revealed a positive trend in the country’s labor market. The Total Cash Earnings showed a notable rise, reaching 2.3% on a 12-month basis, up from 2.1% recorded in March. This increase suggests that wages are growing, potentially enhancing consumer spending power within the Japanese economy. As wages rise, it is likely to boost domestic consumption and economic growth, as workers have more disposable income to spend. Moreover, this could indicate a recovery stage in the labor market, promoting confidence in economic resilience amidst global economic fluctuations.
In contrast, the U.S. presented a mixed economic picture in April 2025. The Census Bureau reported a 3.7% decline in new orders for manufactured goods, deepening from a revised decrease of 3.4% in the previous month. This downward trend indicates a slowdown in the manufacturing sector, possibly due to weakening demand or supply chain disruptions. Conversely, the Job Openings and Labor Turnover Survey (JOLTS) revealed an increase in job openings to 7.391 million, up from the revised 7.2 million in March. This rise in job openings suggests that the labor market remains robust, with businesses still in demand for workers despite the slump in manufacturing orders. Thus, while the manufacturing sector faces challenges, the overall labor market strength could continue to underpin economic stability in the U.S.
Given these economic conditions, USDJPY exhibited a decline of 0.84%, reaching 142.73, reflecting the market’s response to the economic indicators from Japan and the U.S. The rise in Japan’s Total Cash Earnings likely boosted the yen’s attractiveness, with improved wage growth signaling economic strength. Meanwhile, the mixed signals from the U.S. economic data, with a decline in manufacturing orders counteracted by robust labor market performance, may have led to a cautious stance on the dollar. Traders and investors are likely waiting for further data, especially the upcoming U.S. Nonfarm Payroll Employment report, to determine the economic direction and its potential impact on USDJPY. Until significant new data emerges, the pair might remain in a state of consolidation, reacting to the dynamic economic developments in both countries.
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What can we expect from USDJPY today?
USDJPY on Wednesday dropped -0.84% to 142.73. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 142.09 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 144.40 or trades above daily pivot 143.24. While to the downside, the daily low of 142.60 and 142.09 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 142.60 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 | 145.68 |
| R2 | 145.04 |
| R1 | 143.89 |
| Daily Pivot | 143.24 |
| S1 | 142.09 |
| S2 | 141.45 |
| S3 | 140.3 |