USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.18% | -26.3 Pips |  |
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| Week to-date | -0.15% | -21.2 Pips | |
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| June | 0.35% | 50.8 Pips |  |
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Upcoming key events (London Time)
Wed 01:30 PM USD CPI Inflation Rate (12-mth)
What happened lately
There are currently no significant economic developments reported, indicating a period of stability or lack of immediate changes in the economic indicators of the countries involved. Nevertheless, an important upcoming event is scheduled, which is the release of the Consumer Price Index (CPI) inflation rate in the United States. Set to be released on Wednesday at 01:30 PM, this event carries a high level of impact as it provides critical insights into the inflationary trends within the US. The CPI data will be crucial for market participants as it influences future monetary policy and economic forecasts. A higher than expected inflation rate might prompt the Federal Reserve to take measures to address inflationary pressures, potentially impacting interest rates.
For the USDJPY currency pair, the current lack of major economic news has resulted in the pair being in a consolidation phase, with a slight drop of 0.18% to a level of 144.53 on Monday. However, the anticipation around the release of the US CPI inflation data could lead to increased volatility in the pair. Should the inflation rate exceed expectations, it might lead to a stronger US dollar as investors anticipate tighter monetary policy, potentially causing the USDJPY pair to rise. Conversely, if the inflation rate is lower than expected, it could lead to a softer dollar, resulting in a potential decline in the USDJPY pair. Therefore, the upcoming CPI data is pivotal in determining the short-term movements of the USDJPY exchange rate.
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What can we expect from USDJPY today?
USDJPY on Monday dropped -0.18% to 144.53. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 144.01 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 144.95 or trades above daily pivot 144.48. While to the downside, the daily low of 143.97 and 144.01 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 143.97 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 | 145.97 |
| R2 | 145.46 |
| R1 | 144.99 |
| Daily Pivot | 144.48 |
| S1 | 144.01 |
| S2 | 143.5 |
| S3 | 143.04 |