Market Participants to Keep a Close Eye on USD/JPY Movements Following the U.S. Employment Report
07.08.2023
- European Investor Sentiment Index
- Remarks by Bowman, Member of the Federal Reserve Board
Last weekend, the U.S. dollar continued to fall against the yen following the release of the U.S. July employment report on Friday, the 4th, which showed nonfarm payrolls of 187,000—below the market forecast of 199,000.The USD/JPY pair fell by approximately 130 pips from 142.889 to 141.549, breaking below the key support level of 142 yen that had been closely watched recently. However, on the short-term hourly chart, the 200-period SMA is acting as a support line, so we will be watching closely to see if the U.S. dollar can stage a rebound during European trading hours.
European currencies saw the euro trade in a tight range against the yen after the June retail sales figures for the eurozone, released last weekend, showed an improvement year-over-year, moving from a 2.9% decline the previous month to a 1.4% decline.The EUR/JPY pair traded within a narrow range between 155.927 and 156.610, with the 200-period simple moving average (SMA) on the hourly chart acting as support.From a technical perspective, the EUR/JPY pair is positioned just below the daily 20-day moving average (MA), creating a market environment prone to swings in either direction; therefore, it is important to carefully monitor price movements during U.S. trading hours.
Today, at 14:00, Japan’s Economic Sentiment Index; at 14:45, Switzerland’s Employment Statistics; at 15:00, Germany’s Industrial Production, the UK’s Halifax House Price Index, South Africa’s Foreign Exchange Reserves, and Norway’s Manufacturing Production; at 17:30, the Eurozone’s Investor Sentiment Index;at 21:00, the Mexican Consumer Confidence Index; at 21:30, remarks by Fed Governor Bowman and Atlanta Fed President Bostic; at 25:00, remarks by MPC Member Pill; and at 28:00, U.S. consumer credit balances.We will be closely monitoring the price action of the USD/JPY pair, which fell following the release of the U.S. employment report.
Author: Keisuke Sakurai
