USDJPY Analysis

Upcoming key events (GMT+8)

No major events for the day.

What happened lately

The USDJPY pair experienced a modest increase of 0.14% on Thursday, closing at 159.18000, with a trading range between a high of 159.30000 and a low of 158.25000. This movement occurred in the absence of any major economic releases specific to the period, suggesting that the price action was influenced by broader market sentiment rather than specific data points.

Recent U.S. economic data releases may have contributed to the overall market environment. The New York Empire State Manufacturing Index showed a significant improvement, rising to 11 points in April from -0.2 points in March. Additionally, the U.S. Initial Unemployment Insurance Claims decreased to 207,000 for the week ending April 11, down from 219,000 previously. The Manufacturing Business Outlook Survey also reported a positive shift, increasing to 26.7 points in April from 18.1 points in March. These indicators suggest a strengthening U.S. economic outlook, which could have supported the USDJPY’s upward movement.

Despite these positive economic signals, U.S. Industrial Production figures presented a mixed picture. While the month-on-month change remained steady at 0.2% in March, there was a noted decrease of 0.5% following a revised increase from 0.2% to 0.7% in February. This mixed data may have tempered the enthusiasm somewhat, but overall, the market sentiment appears to have leaned towards optimism.

Looking ahead, there are no major scheduled events that could directly impact the USDJPY pair in the immediate term. Traders may continue to monitor broader economic trends and any unscheduled developments that could influence market dynamics.

In summary, the USDJPY’s slight rise reflects a market environment influenced by recent positive U.S. economic data, despite the lack of major scheduled events or releases during the period. The overall sentiment appears cautiously optimistic, supported by improvements in manufacturing and labor market indicators.

What can we expect from USDJPY today?

USDJPY is exhibiting a bullish daily outlook with a slight increase of 0.14%, closing at 159.18000. The pair’s price remains above the 9-day EMA, and the rising stochastic indicator suggests further upward momentum.

Should the bullish momentum continue, traders should watch for a break above the immediate resistance at R1: 159.57. A sustained move beyond this level could target the next resistance at R2: 159.96, indicating further strength in the pair.

Conversely, if bearish pressures emerge, a decline below the daily pivot at 158.91 could lead to a test of the first support level at S1: 158.52. Further selling pressure might drive the pair towards the second support at S2: 157.86, suggesting a potential reversal of the current bullish trend.

Key levels to watch out: