USDJPY on Thursday dropped -0.5% to 142.16. Looking bearish. What we know.

USDJPY Analysis

Performance after Thursday
PeriodPctChgMomentum
Thursday-0.5%-71.5 Pips
Week to-date-1.88%-272.9 Pips
December-4.06%-601.2 Pips

Upcoming key events (London Time)

No major events for the day.

What happened lately

🇺🇸 In the week ending 09 December, U.S. Initial Unemployment Insurance Claims dropped to 202K compared to previous figure 220K Source: Department of Labor
🇺🇸 U.S. Monthly Retail Trade (1-mth) in November exceed forecast and rose to 0.3% compared to previous figure -0.2, revised from -0.1% in October Source: Census Bureau
🇺🇸 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 (12-mth) in November below forecast and dropped to 0.9% compared to previous figure 1.2, revised from 1.3% in October
🇺🇸 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

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What can we expect from USDJPY today?

USDJPY on Thursday dropped -0.5% to 142.16. Price is below 9-Day EMA while Stochastic is falling.

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

Looking ahead for the day, immediate support level is at 141.11 (S1) with break below could see further selling pressure towards 140.05 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 142.91 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 140.95 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:

R3145.02
R2143.96
R1143.06
Daily Pivot142.01
S1141.11
S2140.05
S3139.15

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