USDJPY Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.15% | -22.3 Pips |  |
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| Week to-date | 2.76% | 394.499 Pips |  |
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| October | 2.1% | 301.799 Pips |  |
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Upcoming key events (London Time)
Fri 01:30 PM USD Nonfarm Payroll Employment
What happened lately
In August, U.S. new orders for manufactured goods witnessed a slight decline, reducing by 0.2%. This contrasts with a considerably higher revised increase of 4.9% noted in July, as reported by the Census Bureau. The data indicates a modest cooling in manufacturing demand as the numbers edge into negative territory, suggesting potential caution among manufacturers and a slight reduction in manufacturing sector activities.
Furthermore, figures from the Department of Labor reveal that for the week ending September 28, U.S. Initial Unemployment Insurance Claims increased to 225,000. This marks a rise from a previous revised number of 219,000, indicating a slight uptick in the number of individuals filing for unemployment benefits. Although the figures reflect a weekly increase, they still remain relatively moderate compared to historical standards, showcasing a labor market that is under some pressure but continues to demonstrate resilience.
In financial markets, the USDJPY currency pair eased by 0.15% closing at 146.73 on Thursday. The pair is currently in consolidation, likely reflecting the subdued economic data from the U.S., which may have implicated investor sentiment. The reduction in manufacturing orders potentially signals weaker economic momentum, while the slight increase in unemployment claims might indicate emerging caution within the labor market. These factors create a perception of moderation in the U.S. economic recovery, potentially impacting the dollar’s strength negatively against the yen, a traditionally safe-haven currency. Traders are likely awaiting further clarification from upcoming significant economic indicators, such as the Nonfarm Payroll Employment report scheduled for release, which will provide deeper insights into the labor market conditions and influence further movements in the USDJPY pair.
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What can we expect from USDJPY today?
USDJPY on Thursday dropped -0.15% to 146.73. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 146.27 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 147.24 or trades above daily pivot 146.75. While to the downside, the daily low of 146.30 and 146.27 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 146.30 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 2.76% over the past few days.
Key levels to watch out:
| R3 | 148.16 |
| R2 | 147.7 |
| R1 | 147.21 |
| Daily Pivot | 146.75 |
| S1 | 146.27 |
| S2 | 145.81 |
| S3 | 145.33 |