USDJPY rises 1.03% to 144.64 amid mixed U.S. housing data and market anticipation

USDJPY Analysis

Performance after Wednesday
Period	Pct	Chg	Momentum
Wednesday	1.03%	147.7 Pips
Week to-date	0.44%	63.7 Pips
September	-0.17%	-24.9 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD GDP annual rate
Thu 02:20 PM USD Federal Reserve Chair Jerome Powell speech
Fri 12:30 AM JPY Tokyo CPI (Inflation Rate) (12-mth)
Fri 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)

What happened lately

In the United States, the new-home sales for August experienced a reduction of 4.7%, a stark contrast to the 10.6% increase observed in July. This decline suggests a possible slowdown in the housing market, potentially influenced by factors like higher mortgage rates and affordability issues. On a more positive note, the U.S. House Price Index for July showed a slight improvement, rising by 0.1% compared to a decrease of 0.1% in June, as reported by the Federal Housing Finance Agency (FHFA). This uptick may indicate minor recovery in house prices, offering a somewhat mixed outlook for the real estate sector.

Regarding the USD/JPY currency pair, the news led to a 1.03% rise, pushing the exchange rate to 144.64. The contrasting data from the U.S.—with declining new-home sales but an improving House Price Index—coupled with upcoming high-impact events like the U.S. GDP annual rate announcement and Federal Reserve Chair Jerome Powell’s speech, has created market anticipation. Additionally, the Tokyo CPI data release later in the week could introduce further volatility. If the GDP data and Powell’s comments point to economic strength or further monetary tightening, the USD could see additional gains. Conversely, any indication of economic weakness might result in a pullback against the yen. High-impact events, especially the PCE Price Index, are critical indicators of inflation and the Fed’s future policy direction, adding layers of complexity to USD/JPY movements.

Latest from X (Twitter)

Tweets by Bank_of_Japan_e

What can we expect from USDJPY today?

USDJPY on Wednesday rose 1.03% to 144.64. Price is above 9-Day EMA while Stochastic is falling.

Updated daily direction for USDJPY looks bullish as the pair ended higher after Wednesday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 145.35 with break above could target R2 at 146.07. While towards the downside, we are looking at daily low of 142.90 as an important support. Break below this level could weaken the current bullish momentum. A break above 144.84 would suggest bullish bias after recent positive movement.

For the week to-date, take note that USDJPY is bullish as the pair continued to trade higher and is up by 0.44% over the past few days.

Key levels to watch out: