USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.26% | 37.1 Pips |  |
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| Week to-date | 0.31% | 44.1 Pips |  |
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| September | -2.71% | -392.9 Pips |  |
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Upcoming key events (London Time)
Tue 01:30 PM USD Monthly Retail Trade (1-mth) Wed 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate) Wed 07:00 PM USD Interest Rate Projections
What happened lately
The U.S. New York Empire State Manufacturing Index for September surged to 11.5 points, a substantial improvement from the -4.7 points recorded in August. This index is a critical gauge of manufacturing activity in New York State, and the positive shift indicates a notable rebound in manufacturing output. The data suggest that manufacturers are experiencing growth, which could reflect broader positive economic trends in the U.S. economy.
The upward movement in the USDJPY on Monday, with the pair rising 0.26% to 140.96, can be influenced by this robust manufacturing data. A rising manufacturing index typically boosts investor confidence in economic stability, subsequently strengthening the U.S. Dollar (USD) against other currencies, including the Japanese Yen (JPY).
Furthermore, the currency pair is likely to experience significant volatility in the upcoming days, given the high-impact events scheduled. The Monthly Retail Trade data and the Federal Reserve’s Interest Rate Decision and Projections are imminent. Positive retail data and hawkish Fed decisions could further strengthen the USD, thereby potentially pushing the USDJPY pair higher. Conversely, any dovish stance from the Federal Reserve might pressure the pair downward.
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What can we expect from USDJPY today?
USDJPY on Monday rose 0.26% to 140.96. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks bullish as the pair ended higher after Monday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 141.46 with break above could target R2 at 141.96. While towards the downside, we are looking at daily low of 139.57 as an important support. Break below this level could weaken the current bullish momentum. A break above 141.01 would suggest bullish bias after recent positive movement.
For the week to-date, take note that USDJPY is mixed as compared to prior week.
Key levels to watch out:
| R3 | 142.9 |
| R2 | 141.96 |
| R1 | 141.46 |
| Daily Pivot | 140.52 |
| S1 | 140.02 |
| S2 | 139.07 |
| S3 | 138.58 |