Baxia Markets News

USD/JPY in Technical Crossroads as Death Cross Looms in the Hourly Chart

Written by Baxia Markets | Oct 5, 2023 8:33:45 AM

The USD/JPY currency pair finds itself in a pivotal position as it retreats from the formidable resistance zone spanning 149-151. Market watchers are keenly anticipating the release of significant economic data today, specifically the Challenger Job Cuts and initial jobless claims reports.

Economists are bracing for a potential uptick in jobless claims, which, if realized in line with or higher than forecasts, could exert weakness on the US dollar. In such a scenario, the price could move lower towards the support zone at 147.63-147.36 (blue colored rectangle), adding fuel to bearish sentiments.

Conversely, should jobless claims come in lower than expected, it may propel the price back towards the resistance zone, potentially instigating a bullish sentiment. Traders should keep a close eye on this pivotal economic data release.

USDJPY Technical Overview

From technical perspective in the hourly timeframe chart, USD/JPY is on the brink of witnessing a death cross, as the EMA 50 and EMA 200 indicators draw near. Additional bearish signals emerge as the MACD line and histogram linger below the zero level, while the William % R indicator remains positioned below -40.

In the short term, the USD/JPY trend continues to exhibit bearish tendencies. However, a decisive return to the key resistance zone between 149 and 151 could potentially alter this trajectory, injecting a more bullish sentiment into the market. Traders are urged to remain vigilant and adapt their strategies accordingly as market dynamics unfold.

Key Economic Releases to Watch Today!

Challenger Job Cuts

Previous 75.151K

Initial Jobless Claims

Forecast 210K vs Previous 204K

Trade Balance

Forecast -62.30B vs Previous -64.70B

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