USDJPY on Friday dropped -0.98% to 135.06. Week ending 2023-03-10 moved lower by -0.56%. Looking bearish. What you need to know.

USDJPY by TradingView

Performance
Period	Pct	Chg	Momentum
Friday	-0.98%	-133 Pips
Week 2023-03-10	-0.56%	-76.6 Pips
March	-0.81%	-110.7 Pips

Upcoming key events for the new week (London Time)

Tue 12:30 PM USD CPI Inflation Rate excluding Food & Energy sectors (1-mth)
Tue 11:50 PM JPY Bank of Japan Monetary Policy Meeting Minutes
Wed 12:30 PM USD Retail Sales (1-mth)
Wed 12:30 PM USD Retail Control Group

What happened over the week

📆 ☢️ 🇺🇸 USD Nonfarm Payroll Employment in February exceed forecast and dropped to 311K compared to previous figure 504, revised from 517K in January. Source
📆 ☢️ 🇯🇵 JPY Bank of Japan Short-Term Policy Interest Rate unchanged at -0.1% compared to previous rate -0.1%. Source
📆 🇯🇵 JPY Overall Household Spending (12-mth) in January exceed forecast and improved to -0.3% compared to previous figure -1.3% in December. Source
🇺🇸 📆 USD In the week ending 04 March, the Initial Unemployment Claims rose to 211K compared to previous figure 190K. Source
📆 🇯🇵 JPY GDP (12-mth) in Q4 below forecast and dropped to 0.1% compared to previous figure 0.6% in Q3. Source
📆 ☢️ 🇯🇵 JPY GDP (3-mth) in Q4 below forecast and dropped to 0% compared to previous figure 0.2% in Q3. Source
📆 🇺🇸 USD Goods and Services Trade Balance in January below forecast and dropped to -68.3$ compared to previous figure -67.2, revised from -67.4$ in December. Source
📆 🇯🇵 JPY Current Account in January below forecast and dropped to -1976.6¥ compared to previous figure 33.4¥ in December. Source
📆 🇺🇸 USD Factory Orders (1-mth) in January below forecast and dropped to -1.6% compared to previous figure 1.7, revised from 1.8% in December. Source

What can we expect from USDJPY for the new week and what happened on Friday?

USDJPY on Friday dropped -0.98% to 135.06. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2023-03-10, the pair dropped -0.56% or -76.6 pips lower.

Looking ahead on Monday, USDJPY looks mixed as the pair is likely to consolidate above week low of 134.11.

For the new week, our technical outlook looks bearish, immediate support level is at 133.48 (WS1) with break below could see further selling pressure towards 131.90 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 137.91 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 134.11 would indicate selling pressure.

For the month of March, USDJPY is down by -0.81% or -110.7 pips lower.

Weekly key levels to watch out:

You might also be interested in:

Statement on Monetary Policy Source: Bank of Japan
January job openings and quits decrease; layoffs and discharges increase Source: Bureau of Labor Statistics Publications
Quarterly GDP bulletin Source: Cabinet Office
U.S. International Trade in Goods and Services, January 2023 Source: Bureau of Economic Analysis
U.S. International Trade in Goods and Services Source: Census Bureau
Monthly Wholesale Trade: Sales and Inventories Source: Census Bureau
Powell, Semiannual Monetary Policy Report to the Congress Source: Federal Reserve
Speech by Board Member TAKATA in Kanagawa on Mar. 2, 2023 (Economic Activity, Prices, and Monetary Policy in Japan) Source: Bank of Japan
Balance of Payments, January 2023 (Preliminary) Source: Ministry of Finance
Manufacturers’ Shipments, Inventories, and Orders Source: Census Bureau
Trade Statistics (First 20 Days of February 2023 [Provisional]) Source: Ministry of Finance
Speech by Board Member NAKAGAWA in Fukushima on Mar. 1, 2023 (Economic Activity, Prices, and Monetary Policy in Japan) Source: Bank of Japan

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