USD/JPY on the Rebound: Key Insights Ahead of November NFP
Updated
The USD/JPY currency pair is witnessing the US Dollar regaining some strength following its reversal on November 15. As market participants look ahead to the critical US Nonfarm Payrolls (NFP) report for November, they are eager for insights into the current labor market conditions. Economists predict that the US economy added around 200,000 jobs, a significant increase compared to October's modest gain of just 12,000. It's worth noting that the NFP estimates for various sectors were impacted by hurricanes that occurred last month. Additionally, the Unemployment Rate is projected to rise slightly to 4.2% from the previous figure of 4.1%.
Attention will also be focused on the US Average Hourly Earnings data, which will provide clues about wage growth trends. An uptick in wages can drive consumer spending, potentially fueling inflation and reigniting concerns about sustained price pressures. Such developments may influence market expectations regarding the Federal Reserve's stance ahead of its December meeting.
Currently, the USD is experiencing a rebound from a demand support zone. Although seasonal forecasts indicate a possible bearish trend, there is potential for the USD to strengthen further, possibly testing the 155 level again.
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Attention will also be focused on the US Average Hourly Earnings data, which will provide clues about wage growth trends. An uptick in wages can drive consumer spending, potentially fueling inflation and reigniting concerns about sustained price pressures. Such developments may influence market expectations regarding the Federal Reserve's stance ahead of its December meeting.
Currently, the USD is experiencing a rebound from a demand support zone. Although seasonal forecasts indicate a possible bearish trend, there is potential for the USD to strengthen further, possibly testing the 155 level again.
✅ Please share your thoughts about USD/JPY in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
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Trade closed: target reached
The USD has continued to gain strength for the third consecutive day, keeping the USD/JPY pair subdued as it hovers around the 152.530 mark while I write this article. Geopolitical tensions and apprehensions regarding President-elect Donald Trump's tariff proposals have bolstered the safe-haven appeal of the Japanese Yen (JPY).
With market focus shifting towards the upcoming November Consumer Price Index (CPI) data from the United States, technical indicators suggest a likely continuation of the bearish trend for the JPY, along with the potential for sustained bullish momentum for the USD. As market participants look for signs of economic strength in the US, the dynamics between these currencies will be crucial to watch in the coming days.
Note
The USD/JPY currency pair is poised to extend its five-day winning streak, currently testing the significant level of 154.00 early Monday. Despite positive economic data from Japan, traders are choosing to take profits on their long positions in the yen as they prepare for the upcoming policy decisions from both the Federal Reserve and the Bank of Japan later this week.
Interestingly, the pair has shown remarkable resilience against overall weakness in the US Dollar. As market participants brace for this critical week, the focus will also be on the upcoming US Purchasing Managers’ Index (PMI) data, which could further influence trading dynamics.
Note
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