USDJPY on Wednesday dropped -1.99% to 142.58. Looking bearish. What we know.

USDJPY Analysis

Performance after Wednesday
PeriodPctChgMomentum
Wednesday-1.99%-290.099 Pips
Week to-date-1.59%-231 Pips
December-3.77%-559.3 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD Monthly Retail Trade (1-mth)

What happened lately

🇺🇸 U.S. Interest Rate Projections – Longer unchanged at 2.5% compared to previous rate 2.5%
🇺🇸 U.S. Interest Rate Projections – 3rd year unchanged at 2.9% compared to previous rate 2.9%
🇺🇸 U.S. Interest Rate Projections – 2nd year dropped to 3.6% compared to previous rate 3.9%
🇺🇸 U.S. Fed Interest Rate Decision (Federal Funds Rate) unchanged at 5.5% compared to previous rate 5.5% Source: Federal Reserve
🇺🇸 U.S. Interest Rate Projections dropped to 5.4% compared to previous rate 5.6%
🇺🇸 U.S. Interest Rate Projections – 1st year dropped to 4.6% compared to previous rate 5.1%
🇺🇸 U.S. Producer Price Index (1-mth) in November below forecast and rose to 0% compared to previous figure -0.4, revised from -0.5% in October
🇯🇵 Japan Tankan Large Manufacturing Index in Q4 exceed forecast and rose to 12 points compared to previous figure 9 points in Q3 Source: Bank of Japan
🇯🇵 Japan Tankan Large Manufacturing Outlook in Q4 below forecast and dropped to 8 points compared to previous figure 10 points in Q3
🇯🇵 Japan Tankan Large All Industry Capex in Q4 exceed forecast and dropped to 13.5% compared to previous figure 13.6% in Q3
🇺🇸 U.S. Monthly Budget Statement in November exceed forecast and dropped to -314$ compared to previous figure -67$ in October Source: Bureau of the Fiscal Service
🇺🇸 U.S. CPI Inflation Rate (12-mth) in November dropped to 3.1% compared to previous figure 3.2% in October Source: Bureau of Labor Statistics

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What can we expect from USDJPY today?

USDJPY on Wednesday dropped -1.99% to 142.58. Price is below 9-Day EMA while Stochastic is falling.

Updated daily direction for USDJPY looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at 141.1 (S1) with break below could see further selling pressure towards 139.63 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 145.99 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 142.07 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:

R3148.95
R2147.47
R1145.03
Daily Pivot143.55
S1141.1
S2139.63
S3137.18

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