USDJPY Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 1.03% | 157.799 Pips |  |
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| Week to-date | 1.41% | 215.4 Pips | |
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| November | 1.62% | 246.1 Pips |  |
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Upcoming key events (London Time)
Thu 07:00 PM USD Fed Interest Rate Decision (Federal Funds Rate)
What happened lately
Japan’s Monthly Labour Survey reported a decrease in Total Cash Earnings, falling to 2.8% in September from a previous 3% in August, as revealed by the Ministry of Health, Labour and Welfare (MHLW). This decline indicates a slowdown in wage growth, which could suggest softer economic conditions affecting consumer spending power. In addition, a reduction in cash earnings may signal potential challenges in inflation targets, prompting the Bank of Japan to reconsider its monetary policy strategies to stimulate economic activity and price stability.
In the United States, the recent election concluded with Donald Trump securing a win over Kamala Harris in the 2024 U.S. presidential race. Trump will serve as the 47th president. This political shift invites a period of economic speculation regarding potential policy changes that may impact international relations and economic policies. Trump’s previous term was marked by substantial fiscal measures, including tax cuts and increased government spending, and similar actions could be anticipated, influencing market sentiment and prompting adjustments in economic forecasts.
The USDJPY currency pair showed significant market movement, increasing by 1.03% to 154.44. This appreciation of the US dollar against the yen could be driven by the anticipated policy shifts from Donald Trump’s presidency, stimulating investor interest in dollar-dominated assets. Furthermore, the upcoming Federal Reserve interest rate decision remains a focal point for traders. If the Fed continues to raise interest rates, it could further bolster the dollar’s strength, making it more attractive to investors compared to the lower-yielding yen.
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What can we expect from USDJPY today?
USDJPY on Wednesday rose 1.03% to 154.44. Price is above 9-Day EMA while Stochastic is rising.
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 155.67 with break above could target R2 at 156.89. While towards the downside, we are looking at daily low of 151.28 as an important support. Break below this level could weaken the current bullish momentum. A break above 154.70 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 1.41% over the past few days.
Key levels to watch out:
| R3 | 159.08 |
| R2 | 156.89 |
| R1 | 155.67 |
| Daily Pivot | 153.47 |
| S1 | 152.25 |
| S2 | 150.06 |
| S3 | 148.83 |