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Daily Forex News and Watchlist: USD/JPY


Major pairs are stuck in consolidation, as most banks are still closed for the holidays.

Do you think USD/JPY can spend the rest of the day in its range?

Before moving on, ICYMI, Friday’s watchlist checked out EUR/USD’s symmetrical triangle pattern. Be sure to check out if it’s still a good play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

BOJ core CPI slid from 3.0% y/y to 2.7% vs. 3.0% forecast in November, dampening hopes of policy normalization anytime soon

BOJ head Ueda says that they will consider adjusting policy if wage-inflation cycle strengthens, adding weight on spring wage hike negotiations

Japanese jobless rate held steady at 2.5% as expected in November, keeping pressure on employers to boost pay

Price Action News

Overlay of JPY vs. Major Currencies Chart by TradingView

Overlay of JPY vs. Major Currencies Chart by TradingView

There wasn’t much on the docket today apart from jobless rate data from Japan, along with the release of the BOJ core CPI.

The jobs figure came in line with expectations, keeping traders hopeful that the spring wage hike negotiations could have a positive outcome for incomes. In turn, this could boost inflation expectations, which might then prompt the BOJ to consider exiting its ultra-easy monetary policy era sooner rather than later.

In his speech, BOJ head Ueda noted that they plan on maintaining YCC targets and negative interest rates to ensure that conditions are right before adjusting.

Upcoming Potential Catalysts on the Economic Calendar:

U.S. S&P/CS house price index at 1:30 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action!  ️

USD/JPY 15-min Forex Chart

USD/JPY 15-min Forex Chart by TV

USD/JPY has been bouncing between support at the 142.00 major psychological mark and resistance at the 142.50 minor psychological level over the past few days.

Earlier on, the yen drew some support from expectations of the spring wage negotiations bearing fruit and lifting overall inflation, but a relatively dovish speech from BOJ head Ueda kept gains in check.

Price is hanging out at the middle of its range, still deciding where to go next. A move below the pivot point level (142.33) could take it back down to the range bottom that lines up with S3 (142.02) while a rally past R1 (142.32) could be followed by a test of resistance near R3 (142.59).

There’s not much in the way of top-tier releases that might spur strong moves, though. Uncle Sam only has a couple of house price indices lined up, but strong results could still lead to a dollar boost.

Do watch out for a test of the nearby support zones at S1 (142.20) or S2 (142.14) in case the figures fall short. Good luck and good trading!

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