USDJPY Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | 0.12% | 18.2 Pips |  |
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| Week to-date | 0.06% | 9 Pips |  |
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| October | 6.67% | 958.699 Pips | |
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Upcoming key events (London Time)
Wed 12:30 PM USD GDP annual rate
What happened lately
The unemployment rate in Japan saw a slight decline, falling to 2.4% in September from 2.5% in August, as reported by the Statistics Bureau of Japan. This subtle decrease indicates a steady labor market, reflecting positively on Japan’s economy. A lower unemployment rate is generally associated with economic stability and growth potential, as more individuals are employed, contributing to economic output. Furthermore, the consistent fall in unemployment showcases resilience in Japan’s labor sector, possibly driven by higher domestic demand or improved business conditions.
In context with USDJPY dynamics, typically economic news from Japan might have a moderate influence on its currency when paired against the US dollar. The slight improvement in Japan’s unemployment rate might contribute to an appreciation of the yen, since positive economic indicators often lead to investor confidence in the currency. However, the movement in USDJPY is a composite result of data and events from both economies in question.
For the USDJPY, despite Japan’s improved unemployment figures, the currency pair registered a positive movement on Monday, as the USDJPY rose by 0.12% to hit 153.30. This increase suggests strength in the US dollar over the yen, possibly anticipating upcoming high-impact economic data from the US, such as the GDP annual rate release. Such data may influence expectations regarding future economic performance and Fed policy, leading investors to make adjustments in currency markets.
Looking forward, investors and analysts might focus on the forthcoming US GDP data, slated for release on Wednesday. A strong GDP report would likely bolster the US dollar, potentially driving USDJPY further upward. Conversely, a weaker GDP could trigger a dollar downturn, allowing the yen to regain some ground. This economic interplay reflects both current conditions and future expectations, underpinning how data from each nation can impact currency pairs like USDJPY.
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What can we expect from USDJPY today?
USDJPY on Monday rose 0.12% to 153.30. Price is above 9-Day EMA while Stochastic is rising.
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 153.99 with break above could target R2 at 154.67. While towards the downside, we are looking at daily low of 152.40 as an important support. Break below this level could weaken the current bullish momentum. A break above 153.88 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 | 155.46 |
| R2 | 154.67 |
| R1 | 153.99 |
| Daily Pivot | 153.19 |
| S1 | 152.51 |
| S2 | 151.72 |
| S3 | 151.03 |