USD/JPY Technical Analysis: Navigating Economic Shifts as Pair Eyes 152 Resistance

The USD/JPY pair modestly increased to 151.714, up by 0.02%, as market participants weigh the economic indicators from Japan and the U.S. With the pivot point set at 151.56, the currency pair faces immediate resistance at 151.96, with further barriers at 152.39 and 152.82. Conversely, support levels are established at 151.03, 150.61, and 150.25.

Economic data from Japan shows the Tankan Manufacturing Index slightly above expectations at 11, against a forecast of 10, indicating resilience in the manufacturing sector.

The Tankan Non-Manufacturing Index also surpassed forecasts, registering at 34 compared to the anticipated 31, suggesting strength in the service sector. However, the Final Manufacturing PMI remained constant at 48.2, reflecting ongoing challenges in manufacturing.

Japanese 10-year bond yields from the latest auction came in at 0.75%, against the previous rate of 0.72%, signalling investor sentiment towards Japan’s economic outlook. Household spending in Japan decreased by 2.8% year-over-year, a smaller contraction than the expected -6.3%, yet highlighting consumer caution.

In the U.S., attention is directed towards key economic figures:

Unemployment Claims are expected at 213K, and the Trade Balance is projected to show a deficit of -66.9 billion dollars.

These data, alongside Natural Gas Storage changes and forthcoming comments from FOMC members Barkin and Mester, will likely influence the USD/JPY trajectory.

Key Points:

• USD/JPY’s slight increase to 151.714 highlights a cautious market, with critical support and resistance levels identified.
• Japanese economic data presents a mixed picture, influencing the yen’s strength.
• U.S. economic indicators and Federal Reserve communications will play a crucial role in shaping the pair’s direction.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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