USDJPY on Friday dropped -0.69% to 142.25. Week ending 2024-09-06 moved lower by -1.21%. What you need to know.

USDJPY Analysis

Performance
Period	Pct	Chg	Momentum
Friday	-0.69%	-99.1 Pips
Week 242024-09-06	-1.21%	-174.9 Pips
September	-1.82%	-263.9 Pips

Upcoming key events for the new week (London Time)

Wed 02:00 AM Second 2024 United States presidential debate
Wed 01:30 PM CPI Inflation Rate (12-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims
Thu 01:30 PM PPI excluding Food and Energy sectors (12-mth)
Fri 03:00 PM The Index of Consumer Sentiment

What happened over the week

In August, the U.S. Nonfarm Payroll Employment increased to 142,000 from 89,000 in July, which had been revised down by 25,000 to 114,000 as reported by the Bureau of Labor Statistics. Additionally, Nonfarm Business Labor Productivity in the U.S. rose to 2.5% in the second quarter, up from 2.3% in Q1. The Department of Labor highlighted that Initial Unemployment Insurance Claims for the week ending on 31 August dropped to 227,000 from the previous week’s 231,000. Furthermore, the Census Bureau reported that U.S. Factory Orders for July showed a significant rise to 5%, compared to a decline of -3.3% in June. However, the Bureau of Labor Statistics recorded a decrease in Job Openings and Labor Turnover Survey (JOLTS) numbers for July, dropping to 7.673 million from a revised 7.91 million in June.

In Japan, the Ministry of Health, Labor and Welfare (MHLW) reported that Total Labor Cash Earnings for July decreased to 3.6% from 4.5% in June. This drop indicates a weakening in the earnings growth, which might signal reduced consumer spending and potential deflationary pressures in the Japanese economy.

The array of economic data from the U.S. presents a mixed but generally positive outlook. The rise in Nonfarm Payroll Employment and productivity points to a strengthening labor market and efficient business operations. The significant increase in Factory Orders shows robust industrial activity, although the decline in job openings suggests possible cooling in hiring activities. Conversely, Japan’s decrease in labor cash earnings hints at economic challenges.

The USDJPY pair dropped by -0.69% to 142.25000 on Friday and moved lower by -1.21% for the week ending 2024-09-06. This depreciation in USDJPY can be attributed to the mixed U.S. economic data alongside favorable Japanese economic signals. Upcoming events, such as the U.S.’s inflation data, presidential debate, and consumer sentiment index, are likely to influence the USDJPY pair further. Higher-than-expected CPI and PPI data could support the USD, potentially pushing USDJPY higher. Conversely, further dovish outcomes in U.S. economic indicators might keep the pair lower.

From social media

🇯🇵 Japan Total Labor Cash Earnings (12-mth) in July rose to 3.6%, though lower than from the previous growth rate figure of 4.5% in June. https://t.co/Tmun9soTQR

— Market Recap (@forexforum) September 8, 2024

What can we expect from USDJPY for the new week and what happened on Friday?

USDJPY on Friday dropped -0.69% to 142.25. Price is below 9-Day EMA while Stochastic is falling. For the week ending ,2024-09-06, the pair dropped -1.21% or -174.9 pips lower.

Looking ahead, USDJPY looks bearish as the pair posted lower in Friday trading session.

For the new week, our technical outlook looks bearish, immediate support level is at 140.30 (WS1) with break below could see further selling pressure towards 138.36 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 147.12 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 141.76 would indicate selling pressure.

For the month of September, USDJPY is down by -1.82% or -263.9 pips lower.

Weekly key levels to watch out:

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