Published on Apr 7, 2023

Daily Analysis For USD/JPY 07-04-2023

USD/JPY Analysis

Economic Events and Scenario for USD/JPY

Economic Events: -

GMT	Event	Impact	Currency
00:30	(Japan) Overtime Pay YoY	Low	JPY
00:30	(Japan) Household Spending YoY	Low	JPY
00:30	(Japan) Household Spending MoM	Low	JPY
00:30	(Japan) Average Cash Earnings YoY	Low	JPY
00:50	(Japan) Foreign Exchange Reserves	Low	JPY
01:00	(Australia) Good Friday	None	AUD
01:00	(Belgium) Good Friday	None	EUR
01:00	(Canada) Good Friday	None	CAD
01:00	(Ecuador) Good Friday	None	USD
01:00	(El Salvador) Good Friday	None	USD
01:00	(Estonia) Good Friday	None	EUR
01:00	(Euro Area) Good Friday	None	EUR
01:00	(Finland) Good Friday	None	EUR
01:00	(Germany) Good Friday	None	EUR
01:00	(Latvia) Good Friday	None	EUR
01:00	(Luxembourg) Good Friday	None	EUR
01:00	(Malta) Good Friday	None	EUR
01:00	(Netherlands) Good Friday	None	EUR
01:00	(New Zealand) Good Friday	None	NZD
01:00	(Portugal) Good Friday	None	EUR
01:00	(Spain) Good Friday	None	EUR
01:00	(Switzerland) Good Friday	None	CHF
01:00	(United Kingdom) Good Friday	None	GBP
01:00	(United States) Good Friday	None	USD
04:35	(Japan) 3-Month Bill Auction	Low	JPY
05:30	(Netherlands) Household Consumption YoY	Low	EUR
05:30	(Netherlands) Manufacturing Production MoM	Low	EUR
06:00	(Japan) Leading Economic Index	Low	JPY
06:00	(Japan) Coincident Index	Low	JPY
07:00	(Lithuania) Balance of Trade	Low	EUR
07:45	(France) Imports	Low	EUR
07:45	(France) Exports	Low	EUR
07:45	(France) Current Account	Low	EUR
07:45	(France) Balance of Trade	Medium	EUR
08:00	(Austria) Industrial Production YoY	Low	EUR
08:30	(France) Foreign Exchange Reserves	Low	EUR
09:00	(China) Foreign Exchange Reserves	Low	CNY
10:00	(Greece) Balance of Trade	Low	EUR
13:30	(United States) Manufacturing Payrolls	Low	USD
13:30	(United States) Nonfarm Payrolls Private	High	USD
13:30	(United States) Unemployment Rate	High	USD
13:30	(United States) Non Farm Payrolls	High	USD
13:30	(United States) Participation Rate	Medium	USD
13:30	(United States) Government Payrolls	Low	USD
13:30	(United States) Average Weekly Hours	Low	USD
13:30	(United States) Average Hourly Earnings MoM	Medium	USD
13:30	(United States) Average Hourly Earnings YoY	Medium	USD
14:00	(United States) Used Car Prices MoM	Low	USD
14:00	(United States) Used Car Prices YoY	Low	USD
20:00	(United States) Consumer Credit Change	Low	USD

Today's Scenario: - The USD/JPY pair hit a new intraday low near 131.60, reflecting the positive Japanese data in contrast to sluggish market conditions on account of the Good Friday holiday observed at major bourses. The Yen pair is expected to record weekly losses due to its recent fall.

Buy Scenario: - For the USD/JPY pair to register bullish momentum, it must avoid falling below the pivot point at 131.480 and aim to reach the First Major Resistance Level (R1) at 132.186. A move back to 132 would signal a positive session for the USD/JPY, but this would require supportive US economic indicators.

If the bulls extend their rally, they could potentially test the Second Major Resistance Level (R2) at 132.607. The Third Major Resistance Level (R3) is situated at 133.734. Till we did not advise to buy in USD/JPY.

Sell Scenario: - On the other hand, if the USD/JPY pair falls below the pivot point, the First Major Support Level (S1) at 131.059 could come into play. However, unless there is a significant sell-off of the US dollar, the USD/JPY pair should avoid going below the 130 mark. The Second Major Support Level (S2) at 130.353 is likely to provide support, and the Third Major Support Level (S3) is situated at 129.226. Till we did not advise to sell the position in USD/JPY.

Support and Resistance Level: -