USDJPY Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.9% | -131.1 Pips |  |
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| Week to-date | -0.81% | -117.7 Pips |  |
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| June | 0.59% | 85.6 Pips |  |
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Upcoming key events (London Time)
Wed 03:00 PM USD Federal Reserve Chair Jerome Powell testifies Thu 01:30 PM USD GDP annual rate
What happened lately
In the United States, the House Price Index for April 2025 reflected a decrease, dropping to -0.4% from the previous figure of -0.1% in March. This decline in the index, which is provided by the Federal Housing Finance Agency (FHFA), suggests a downward trend in U.S. home prices. The reduction could be indicative of cooling demand or adjustments in the housing market after previous periods of growth or inflationary pressures. The housing market often plays a pivotal role in economic conditions, influencing consumer spending, wealth accumulation, and economic confidence. Any sustained decline in house prices could be concerning as it might lead to reduced consumer spending and sentiment.
The news regarding the decrease in the U.S. House Price Index and the subsequent drop in USDJPY to 144.80 could be interrelated, highlighting potential concerns in the broader U.S. market. The reduction in house prices might reflect negatively on the strength of economic recovery or stability in asset prices, making investors cautious about holding the USD. Moreover, the anticipation of the upcoming high-impact events, such as Federal Reserve Chair Jerome Powell’s testimony and the release of the GDP annual rate, might lead to increased volatility in the USDJPY pair. Investors will be keen to gather insights from these events, especially regarding future monetary policy directions, economic forecasts, and any implications about interest rate adjustments. The USD might experience further fluctuations against JPY based on the sentiment and data emerging from these key events, as investors will react quickly to new information. Hence, traders and economic analysts will closely monitor these developments, as they could provide significant cues for the direction of the currency pair, USDJPY.
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What can we expect from USDJPY today?
USDJPY on Tuesday dropped -0.9% to 144.80. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks bearish as the pair posted lower in Tuesday trading session.
Looking ahead for the day, immediate support level is at 144.15 (S1) with break below could see further selling pressure towards 143.49 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 146.18 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 144.51 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 | 147.48 |
| R2 | 146.83 |
| R1 | 145.82 |
| Daily Pivot | 145.16 |
| S1 | 144.15 |
| S2 | 143.49 |
| S3 | 142.48 |