USDJPY on Wednesday dropped -1.49% to 150.19. End July down by -6.66% or -1071.9 pips lower. Bulls rattled. Things to look out.

USDJPY Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	-1.49%	-227.1 Pips
Week to-date	-2.56%	-395.101 Pips
July	-6.66%	-1071.9 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment
Fri 01:30 PM USD Average Hourly Earnings (1-mth)
Fri 01:30 PM USD Average Hourly Earnings (12-mth)

What happened lately

🇺🇸 U.S. Fed Interest Rate Decision (Federal Funds Rate) unchanged at 5.5% compared to previous rate 5.5% Source: Federal Reserve
🇺🇸 The U.S. Employment Cost Index (ECI) in Q2 decreased to 0.9% from the previous figure of 1.2% in Q1. Source: Bureau of Labor Statistics
🇯🇵 Japan Bank of Japan Short-Term Policy Interest Rate rose to 0.15% compared to previous rate 0% Source: Bank of Japan
🇯🇵 Japan’s large retailer sales in June rose to 7%, compared to the previous figure of 4% in May. Source: METI
🇯🇵 Japan Retail Trade (12-mth) in June rose to 3.7% compared to the revised figure of 3% in May, which was initially reported as 2.8%. Source: METI
Japan’s seasonally adjusted retail trade for June decreased to 0.6% from 1.7% in May. Source: METI
🇺🇸 U.S. Job Openings and Labor Turnover Survey (JOLTS) in June dropped to 8.184M compared to the previous figure of 8.23M, revised from 8.14M in May. Source: Bureau of Labor Statistics
🇺🇸 U.S. House Price Index (1-mth) in May dropped to 0% from a revised figure of 0.3% in April. Source: FHFA
Japan’s unemployment rate in June dropped to 2.5%, compared to 2.6% in May. Source: Statistics Bureau of Japan

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What can we expect from USDJPY today?

USDJPY on Wednesday dropped -1.49% to 150.19. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDJPY looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at 148.56 (S1) with break below could see further selling pressure towards 146.94 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 153.89 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 149.60 would indicate selling pressure.

For the week to-date, take note that USDJPY is bearish as the pair posted lower by -2.56%.

USDJPY ended month of July trading session down by -6.66% or -1071.9 pips lower.

Key levels to watch out: