USDJPY Analysis
| Performance after Tuesday | |||
| Period | Pct | Chg | Momentum |
| Tuesday | -0.12% | -19.0 Pips | ▼ |
| Week to-date | 0.33% | 54.0 Pips | ▲ |
| July | -0.19% | -31.0 Pips | ▼ |
Upcoming key events (GMT+8)
| Time (GMT+8) | Currency | Impact | Event |
| Wed 08:30 PM | USD | HIGH | PPI excluding Food and Energy sectors (12-mth) |
| Thu 08:30 PM | USD | HIGH | Monthly Retail Trade (1-mth) |
What happened lately
The USDJPY pair experienced a slight decline on Tuesday, dropping by 0.12% to close at 162.23000, with a trading range between a high of 162.46000 and a low of 161.62000. This movement indicates a period of consolidation for the pair.
On the previous trading day, the U.S. Consumer Price Index (CPI) data was released, showing a monthly inflation rate of -0.4%, which was below the consensus expectation of -0.1% and a significant decrease from the previous month’s 0.5%. Additionally, the CPI excluding food and energy sectors remained unchanged at 0%, falling short of the consensus forecast of 0.2% and matching the previous month’s figure. These figures suggest a cooling in inflationary pressures, which may have influenced market sentiment and contributed to the USDJPY’s consolidation.
Looking ahead, market participants will be focusing on upcoming high-impact economic events. On Wednesday at 08:30 PM GMT+8, the U.S. Producer Price Index (PPI) excluding food and energy sectors for the 12-month period will be released, followed by the Monthly Retail Trade data on Thursday at the same time. These events could provide further insights into the U.S. economic outlook and potentially impact the USDJPY pair.
Overall, the market sentiment appears cautious, with traders likely awaiting further economic data to gauge the direction of the U.S. economy and its potential impact on the USDJPY exchange rate. The recent CPI data suggests a moderation in inflation, which could influence future trading dynamics.
What can we expect from USDJPY today?
The USDJPY pair closed with a slight decline of 0.12% on Tuesday, settling at 162.23000. The outlook for today remains mixed, with the pair trading above its 9-day EMA and showing rising stochastic indicators.
📈 Bull Scenario If the bullish momentum continues, the USDJPY could test the first resistance level at 162.59. A break above this level may pave the way for further gains towards the second resistance at 162.94. The rising stochastic suggests potential upward pressure, supporting a bullish scenario. | 📉 Bear Scenario On the downside, a move below the daily pivot of 162.1 could lead to a test of the first support level at 161.75. Should bearish sentiment strengthen, the pair might target the second support at 161.26. Traders should watch for any signs of weakening momentum that could trigger a bearish move. |
Key levels to watch out:
| R3 | 163.43 |
| R2 | 162.94 |
| R1 | 162.59 |
| Daily Pivot | 162.1 |
| S1 | 161.75 |
| S2 | 161.26 |
| S3 | 160.91 |