USDJPY on Friday dropped -0.47% to 146.63. Week ending 2024-08-09 rose 0.72%. What happened.

USDJPY Analysis

Performance
Period	Pct	Chg	Momentum
Friday	-0.47%	-69.3 Pips
Week 242024-08-09	0.72%	105 Pips
August	-2.08%	-311 Pips

Upcoming key events for the new week (London Time)

Tue 01:30 PM PPI excluding Food and Energy sectors (12-mth)
Wed 01:30 PM CPI Inflation Rate (1-mth)
Wed 01:30 PM CPI Inflation Rate (12-mth)
Thu 12:50 AM GDP (3-mth)
Thu 01:30 PM Initial Unemployment Insurance Claims
Thu 01:30 PM Monthly Retail Trade (1-mth)

What happened over the week

In the United States, the latest economic data from the Department of Labor indicated a decrease in Initial Unemployment Insurance Claims to 233,000 for the week ending August 3. This marked a drop from the previous figure of 250,000, which itself had been revised from an initial report of 249,000. This decrease in unemployment claims is a positive signal for the labor market, suggesting fewer Americans are seeking unemployment benefits and potentially indicating continuing economic strength.

Despite this positive labor market news, the USDJPY currency pair experienced a downward movement on Friday, declining by 0.47% to 146.6300. However, over the week ending August 9, the pair saw a rise of 0.72%. This contrasting performance within the same week suggests that other factors, such as market sentiment or geopolitical events, might be influencing the currency movement alongside economic indicators.

The decline in the USDJPY on Friday, despite the favorable labor market report, might be attributed to market participants having already priced in the positive news, leading to profit-taking activities. Alternatively, other global financial dynamics or risk aversion may have driven the value of the yen higher against the dollar, leading to the observed dip in the USDJPY pair. However, the overall weekly rise in the pair indicates a prevailing bullish sentiment towards the dollar possibly driven by broader economic confidence or expectations of continued monetary policy tightening by the Federal Reserve.

From social media

🇯🇵 In the Provisional Report of Monthly Labour Survey for June, Japan's Labor Total Cash Earnings (12-mth) increased to 4.5% from the previously revised figure of 2% (up from 1.9%). https://t.co/Iwe0yk99SP

— Market Recap (@forexforum) August 11, 2024

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

USDJPY on Friday dropped -0.47% to 146.63. Price is below 9-Day EMA while Stochastic is rising. For the week ending ,2024-08-09, the pair rose 0.72% or 105 pips higher.

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

For the new week, our technical outlook is mixed. To see upside interest, we prefer to look at price breakout of week high of 147.82 or at least consolidates above Weekly Pivot level of 146.17. On the downside, we are looking at week low 144.06 or 144.52 (WS1) as immediate support level. USDJPY need to break on either side to indicate a short-term bias. A break above 147.82 would suggest bullish bias after recent positive movement.

For the month of August, USDJPY is down by -2.08% or -311 pips lower.

Weekly key levels to watch out:

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