USDJPY on Tuesday dropped -0.22% to 146.83. Buyers beware. How it happened.

USDJPY Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	-0.22%	-32.7 Pips
Week to-date	-0.15%	-21.401 Pips
August	-1.95%	-291.6 Pips

Upcoming key events (London Time)

Wed 01:30 PM USD CPI Inflation Rate (1-mth)
Wed 01:30 PM USD CPI Inflation Rate (12-mth)
Thu 12:50 AM JPY GDP (3-mth)
Thu 01:30 PM USD Monthly Retail Trade (1-mth)

What happened lately

🇺🇸 In July, the U.S. Producer Price Index excluding Food & Energy dropped to 0% compared to the revised June figure of 0.3%, previously reported as 0.4%. Source: Bureau of Labor Statistics
🇺🇸 The U.S. Producer Price Index (12-month) for July dropped to 2.2%, down from the revised June figure of 2.7%, which was initially reported as 2.6%. Source: Bureau of Labor Statistics
The U.S. PPI excluding Food and Energy sectors (12-month) in July dropped to 2.4% compared to the previous figure of 3% in June.
🇺🇸 In July, the U.S. Producer Price Index (1-mth) dropped to 0.1% from 0.2% in June. Source: Bureau of Labor Statistics
🇺🇸 The U.S. Monthly Treasury Budget Statement in July dropped to -$244 billion compared to -$66 billion in June. Source: Bureau of the Fiscal Service

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What can we expect from USDJPY today?

USDJPY on Tuesday dropped -0.22% to 146.83. 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 146.3 (S1) with break below could see further selling pressure towards 145.76 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 147.95 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 146.59 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: