Fundamental Overview
The USD got a boost yesterday as the US NFP report came out better than expected and triggered a hawkish repricing in interest rates expectations. Unfortunately for the greenback, that wasn’t enough as wage growth came out on the softer side which limited further repricing. As the market got quickly back to price just two rate cuts by year-end, the US dollar lost support and eventually gave back most of the gains.
On the JPY side, nothing has changed fundamentally, and the currency has been mainly driven by the risk sentiment. As a reminder, the BoJ kept interest rates unchanged at 0.5% and reduced the bond tapering plan for fiscal year 2026 as expected at the last meeting. The BoJ continues to place a great deal on the US-Japan trade deal and the evolution of inflation before looking at adjusting rates.
USDJPY Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDJPY continues to trade in a range between the 142.35 support and the 146.00 resistance. There’s not much we can glean from this timeframe, so we need to zoom in to see some more details.
USDJPY Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price broke above the key 144.25 zone yesterday following the positive NFP report and it’s now retesting the area. This is where we can expect the buyers to step in with a defined risk below the zone to position for further upside into the 146.28 resistance. The sellers, on the other hand, will look for a break lower to pile in for a drop back into the 142.35 support.
USDJPY Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor upward trendline defining the bullish momentum on this timeframe. The buyers will likely continue to lean on the trendline to keep pushing into new highs, while the sellers will look for a break lower to increase the bearish bets into the 142.35 level next. The red lines define the average daily range for today.
Watch the video below
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( USDJPY Technical Analysis – The positive NFP report wasn’t enough for the USD )
Also on site :