USD/JPY After the Japan Earnings Numbers
USD/JPY has shown immense volatility recently, falling below 1.50 this week but bouncing back up above it, where it stabilized ahead of the earnings report from Japan.
The USD/JPY pair has faced increased bearish pressure over the past two weeks, reversing part of its earlier robust two-month rally, which had pushed the pair up by more than 17 cents. The recent selloff drove the pair sharply below the key 149 level as risk sentiment shifted and the decline gained momentum.
USD/JPY Chart H1 – The 100 SMA Holding As Support at 150
Despite this, USD/JPY managed to recover approximately 3 cents, briefly reclaiming the 151 level. However, the recovery was tempered by weaker U.S. economic data this week, which disrupted the pair’s upward trajectory. The ISM Services Index, a key barometer of U.S. economic activity, posted a sharper-than-expected decline, signaling cooling demand and employment in the services sector.
Additionally, an increase in both JOLTS job openings and initial jobless claims pointed to emerging labor market dynamics, which provided some support for the USD despite the broader softness in economic indicators. This mix of factors has left USD/JPY in a state of flux, with the pair struggling to regain sustained upward momentum amidst evolving economic and market conditions.
Japan’s Average Cash Earnings and Household Spending – October Data
- Household Spending (Year-on-Year):
- Actual: -1.3%
- Expected: -2.6%
- Previous: -1.1%
- Insight: The decline in household spending was less severe than anticipated, indicating a slightly better consumer spending environment compared to forecasts.
- Household Spending (Month-on-Month):
- Actual: 2.9%
- Expected: 0.4%
- Insight: A significant monthly rebound, suggesting increased spending activity, potentially due to seasonal factors or temporary economic stimuli.
- Overtime Pay:
- Current: +1.4%
- Previous: -0.9%
- Insight: A notable recovery in overtime pay reflects increased labor demand and could signal gradual improvements in workforce utilization.
- Overall Labor Cash Earnings (Year-on-Year):
- Actual: 2.6%
- Expected: 2.6%
- Previous: 2.6%
- Insight: Steady growth in labor cash earnings aligns with expectations, providing stability in household income levels.
USD/JPY Live Chart
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