USDJPY Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.2% | -28.5 Pips |  |
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| Week to-date | 0.6% | 85.599 Pips |  |
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| October | -0.19% | -27.5 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the Job Openings and Labor Turnover Survey (JOLTS) for August revealed an increase in job openings to 8.04 million, up from a revised 7.711 million in July. This increase indicates a strengthening labor market, suggesting that businesses are looking to hire more workers. Additionally, the Chicago Purchasing Managers’ Index (PMI) for September rose slightly to 46.6 points from 46.1 points in August, reflecting slight improvement but still showing contraction in the manufacturing sector as the reading is below 50.
In Japan, the economic indicators present a mixed picture. The Tankan Large Manufacturing Index for Q3 remained unchanged at 13 points, while the Tankan Large Manufacturing Outlook also stayed consistent at 14 points compared to Q2. On the other hand, the Tankan Large All Industry Capex showed a decline, dropping to 10.6% in Q3 from 11.1% in Q2, which may indicate caution among businesses regarding future investment. On a positive note, Japan’s unemployment rate decreased significantly to 2.5% in August, down from 2.7% in July, suggesting improvements in the labor market.
The mixed economic data from both the United States and Japan is likely to create some stability in the USDJPY exchange rate. The rise in U.S. job openings and a slight improvement in the PMI indicate some underlying strength in the U.S. economy, which could support the U.S. dollar. Meanwhile, stable manufacturing metrics and improved unemployment figures in Japan suggest that the Japanese economy is holding steady. As a result, traders could see little immediate impetus for significant forex market movements, resulting in the recent consolidation pattern of the USDJPY pair. Given the lack of upcoming major events, the USDJPY may continue to consolidate in the near term.
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What can we expect from USDJPY today?
USDJPY on Tuesday dropped -0.2% to 143.64. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDJPY looks mixed as the pair is likely to consolidate above 142.89 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 144.53 or trades above daily pivot 143.71. While to the downside, the daily low of 142.96 and 142.89 (S1) as immediate support levels. USDJPY need to break on either side to indicate a short-term bias. A close below 142.96 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:
| R3 | 146.02 |
| R2 | 145.28 |
| R1 | 144.46 |
| Daily Pivot | 143.71 |
| S1 | 142.89 |
| S2 | 142.15 |
| S3 | 141.33 |