USDJPY on Thursday dropped -0.67% to 136.17. Looking bearish. What we know.

USDJPY by TradingView

Performance after Thursday
Period	Pct	Chg	Momentum
Thursday	-0.67%	-92.1 Pips
Week to-date	0.25%	33.6 Pips
March	-0.39%	-53.8 Pips

Upcoming key events (London Time)

Fri 03:00 AM JPY Bank of Japan Short-Term Policy Interest Rate
Fri 03:00 AM JPY Bank of Japan Monetary Policy Statement
Fri 06:00 AM JPY Bank of Japan Press Conference
Fri 01:30 PM USD Nonfarm Payroll Employment
Fri 03:00 PM USD Michigan Index of Consumer Sentiment

What happened lately

📆 🇯🇵 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

What can we expect from USDJPY today?

USDJPY on Thursday dropped -0.67% to 136.17. Price is below 9-Day EMA while Stochastic is falling but in overbought zone.

Updated daily direction for USDJPY looks bearish as the pair posted lower in Thursday trading session.

Looking ahead for the day, immediate support level is at 135.65 (S1) with break below could see further selling pressure towards 135.13 (S2). On the upside, immediate resistance is at 136.97 (R1). As the current momentum is bearish, we prefer to look at firm break of the recent daily high of 137.25 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment.USDJPY need to break on either side to indicate a short-term bias. A close below 135.94 would indicate selling pressure.

For the week to-date, take note that USDJPY is mixed as the current price action remain uncertain due to trader indecisiveness.

Key levels to watch out:

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
Trade Statistics (First 20 Days of February 2023 [Provisional]) Source: Ministry of Finance

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