USDJPY on Wednesday dropped -0.51% to 146.84. End January up by 4.15% or 585.2 pips higher. Looking bearish. What we know.

USDJPY Analysis

Performance after Wednesday
PeriodPctChgMomentum
Wednesday-0.51%-76 Pips
Week to-date-0.88%-131 Pips
January4.15%585.2 Pips

Upcoming key events (London Time)

Fri 01:30 PM USD Nonfarm Payroll Employment

What happened lately

🇺🇸 U.S. Fed Interest Rate Decision (Federal Funds Rate) unchanged at 5.5% compared to previous rate 5.5% Source: Federal Reserve
🇺🇸 U.S. Employment Cost Index in Q4 below forecast and dropped to 0.9% compared to previous figure 1.1% in Q3
🇯🇵 Japan Large Retailer Sales in December rose to 5% compared to previous figure 4% (revised from 5%) Source: METI
🇯🇵 Japan Retail Trade seasonal adjustment (1-mth) in December dropped to -0.8% compared to previous figure 0.9% (revised from 1%) Source: METI
🇯🇵 Japan Retail Trade (12-mth) in December below forecast and dropped to 2.1% compared to previous figure 5.4, revised from 5.3% in November Source: METI
🇺🇸 U.S. Job Openings and Labor Turnover Survey (JOLTS) in December exceed forecast and rose to 9.026M compared to previous figure 8.925, revised from 8.79M in November Source: Bureau of Labor Statistics
🇺🇸 U.S. Housing Price Index (1-mth) in November unchanged at 0.3% compared to previous report in October.
🇯🇵 Japan Unemployment Rate in December below forecast and dropped to 2.4% compared to previous figure 2.5% in November Source: Statistics Bureau of Japan

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What can we expect from USDJPY today?

USDJPY on Wednesday dropped -0.51% to 146.84. 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 145.93 (S1) with break below could see further selling pressure towards 145.02 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 147.90 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 146.00 would indicate selling pressure.

For the week to-date, take note that USDJPY is mixed as compared to prior week.

USDJPY ended month of January trading session up by 4.15% or 585.2 pips higher.

Key levels to watch out:

R3149.72
R2148.81
R1147.82
Daily Pivot146.91
S1145.93
S2145.02
S3144.04

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