USDJPY drops 0.47% to 143.54 as market eyes Bank of Japan speech

USDJPY Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	-0.47%	-67.5 Pips
Week to-date	-0.59%	-84.799 Pips
September	-0.9%	-130.1 Pips

Upcoming key events (London Time)

Tue 06:05 AM JPY Bank of Japan Governor Kazuo Ueda speech

What happened lately

On Monday, the USDJPY currency pair experienced a decline of -0.47%, closing at 143.54. This downward movement took place in the absence of significant economic news. Consequently, traders and investors might be interpreting recent market activities and external influences more critically, leading to adjustments in their positions or strategies concerning the USDJPY pair.

Looking ahead, market participants are particularly focused on an upcoming high-impact event involving the Japanese economy. On Tuesday at 06:05 AM JPY, Bank of Japan Governor Kazuo Ueda is scheduled to deliver a speech. Given Ueda’s influential role in the central bank, his speech can potentially create significant fluctuations in the market, particularly affecting the Japanese Yen. Investors will be keenly listening for any hints or updates regarding Japan’s monetary policy, inflation outlook, or economic strategies that could affect the strength of the JPY.

Considering these events, the initial drop in USDJPY might reflect pre-emptive positioning by investors, who anticipate potential remarks from Governor Ueda that could either bolster or weaken the Yen. If Ueda’s comments signal a more hawkish stance or indicate tightening policies in the near future, the JPY might strengthen further against the USD, pushing the USDJPY pair lower. Conversely, if Ueda adopts a dovish tone, emphasizing the need for continued easing or mitigation of other economic concerns, the Yen could weaken, possibly reversing Monday’s decline in the USDJPY pair.

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What can we expect from USDJPY today?

USDJPY on Monday dropped -0.47% to 143.54. Price is above 9-Day EMA while Stochastic is rising.

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

Looking ahead for the day, immediate support level is at 142.98 (S1) with break below could see further selling pressure towards 142.42 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 144.46 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 143.16 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: