USDJPY experiences significant drop, ends April lower
USDJPY Analysis
| Performance after Thursday | |||
| Period | Pct | Chg | Momentum |
| Thursday | -2.3817% | -382.0 Pips | ▼ |
| Week to-date | -1.7569% | -280.0 Pips | ▼ |
| April | -1.3484% | -214.0 Pips | ▼ |
Upcoming key events (GMT+8)
| Time (GMT+8) | Currency | Impact | Event |
| Fri 10:00 PM | USD | HIGH | ISM Manufacturing PMI | Apr |
What happened lately
The USDJPY experienced a significant decline on Thursday, dropping by -2.3817% to close at 156.57000. The pair reached a high of 160.72000 and a low of 155.54000, marking a notable movement in the forex market. This decline contributed to the pair ending April down by -1.3484%, or -214.0 pips lower, highlighting a bearish trend for the month.
Several key economic data releases from the United States were observed in the previous trading day. The Federal Reserve’s decision to maintain the Federal Funds Rate at 3.75% was in line with market expectations, as the actual figure matched both the consensus and the previous rate. Additionally, the PCE Price Index, excluding food and energy, showed a monthly increase of 0.3%, aligning with consensus expectations, while the annual rate rose to 3.2%, slightly above the previous figure of 3%. The GDP annual rate was reported at 2%, which fell short of the consensus expectation of 2.3%, though it marked an improvement from the previous rate of 0.5%.
Looking ahead, traders will be closely monitoring the upcoming release of the ISM Manufacturing PMI for April, scheduled for Friday at 10:00 PM GMT+8. This high-impact event may provide further insights into the economic outlook and influence market sentiment.
Overall, the recent price action in the USDJPY reflects a bearish sentiment, with the pair experiencing a notable decline. While the economic releases did not provide a clear catalyst for this movement, the market’s reaction suggests a cautious approach among traders, potentially influenced by the broader economic landscape and upcoming data releases.
What can we expect from USDJPY today?
USDJPY has experienced a significant decline, closing at 156.57000 after a daily drop of 2.3817%. The pair’s outlook remains bearish, with the price currently below the 9-day EMA.
📈 Bull Scenario If USDJPY manages to break above the daily pivot at 157.61, bullish momentum could be triggered. Traders should watch for further resistance at R1, 159.68, and a more substantial level at R2, 162.79, where a sustained rally could face additional challenges. | 📉 Bear Scenario On the downside, a continuation of the bearish trend could see USDJPY testing the first support level at S1, 154.5. A breach below this level might lead to further declines towards S2, 152.43, reinforcing the negative sentiment observed in the weekly performance. |
Key levels to watch out:
| R3 | 164.86 |
| R2 | 162.79 |
| R1 | 159.68 |
| Daily Pivot | 157.61 |
| S1 | 154.5 |
| S2 | 152.43 |
| S3 | 149.32 |
