USDJPY Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.04% | -6 Pips |  |
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| Week to-date | 1.18% | 170 Pips |  |
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| July | 1.56% | 224 Pips |  |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
The United States witnessed a decrease in Initial Unemployment Insurance Claims, falling to 227,000 in the week ending 05 July. This is a reduction from the previous figure of 232,000, which was revised from an initially reported 233,000 as per the Department of Labor. This decline suggests a slight improvement in the labor market, indicating fewer individuals filing for unemployment benefits. Such data typically reflects a more robust employment scenario, potentially signaling positive economic growth and increased consumer confidence.
The USDJPY pair experienced a slight decline of 0.04% to 146.25. This movement indicates a period of consolidation for the pair, meaning there is no clear trend, and the market participants are possibly awaiting clearer signals or major events to advocate for movement in a particular direction. The improvement in the U.S. unemployment figures may initially appear positive for the USD, yet the immediate lack of significant economic events could have contributed to the limited movement and neutral outlook for the currency pair. The job market data, while indicative of economic health, did not provide enough momentum to significantly alter the exchange rate, suggesting the market players might be absorbing the impact gradually.
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What can we expect from USDJPY today?
USDJPY on Thursday dropped -0.04% to 146.25. Price is above 9-Day EMA while Stochastic is falling in overbought zone.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 145.73 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 146.78 or trades above daily pivot 146.25. While to the downside, the daily low of 145.73 and 145.73 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 145.73 would indicate selling pressure.
For the week to-date, take note that USDJPY is bullish as the pair continued to trade higher and is up by 1.18% over the past few days.
Key levels to watch out:
| R3 | 147.83 |
| R2 | 147.3 |
| R1 | 146.78 |
| Daily Pivot | 146.25 |
| S1 | 145.73 |
| S2 | 145.2 |
| S3 | 144.68 |