Baxia Markets
February 08, 2024

USDJPY Eyes 150 Yen Psychological Level Amidst Jobless Claims Anticipation

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Amidst recent market volatility, USDJPY has surged, breaking previous highs after enduring a two-week correction period. The currency pair's upward trajectory is underscored by the development of a clear ascending trendline over the past several trading sessions. Both the EMA 50 and 200 are now pointing upwards, with an expanding range between them signaling a resurgence in bullish momentum


Today's trading session is particularly notable, with key economic data releases including Continuing and Initial Jobless Claims. Economists anticipate lower claims, fueling bullish expectations for USDJPY. However, the outcome of these releases could determine the pair's direction, with a bearish continuation likely if the data aligns with forecasts. A mixed outcome might trigger a reversal, flipping the trend bullish once more.USDJPY Eyes 150 Yen Psychological Level Amidst Jobless Claims Anticipation

The Bollinger band reflects the current bullish sentiment, with increased volatility as buyers aggressively position themselves ahead of the economic data releases. USDJPY is poised to approach the psychological level of 150 Yen, a crucial milestone that could either signal further upward momentum or a significant reversal.


While both the MACD and RSI indicators point to a bullish trend, caution is warranted. The MACD hints at a potential bearish divergence, while the RSI is at overbought levels, suggesting that 150 Yen could act as a resistance point. A reversal would necessitate confirmation from a trendline break and a death cross on the EMA 50 and 200.


In summary, USDJPY's recent bullish surge may encounter resistance as it approaches the 150 Yen milestone. Traders should monitor economic data releases for potential shifts in market sentiment, with the pair's trajectory likely hinging on the outcome of these key events.


Key Takeaways:

  1. USDJPY has experienced a significant bullish surge, breaking previous highs following a two-week correction period.
  2. The formation of a clear ascending trendline highlights the pair's upward momentum, with both the EMA 50 and 200 indicating a resurgence in bullish sentiment.
  3. Today's trading session is pivotal, with lower jobless claims anticipated, fueling bullish expectations for USDJPY. However, the outcome of these data releases could sway the pair's direction.
  4. Increased volatility, as reflected by the Bollinger band, suggests aggressive positioning by buyers ahead of key economic data releases.
  5. While both MACD and RSI indicators currently point to a bullish trend, caution is advised as USDJPY approaches the psychological level of 150 Yen, with potential resistance and the need for confirmation of a reversal.

Key Economic Releases to Watch Today

USD, Continuing Jobless Claims    

Forecast 1,878K vs Previous 1.898K

USD, Initial Jobless Claims

Forecast 221K vs Previous 224K


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