Dive into the recent USDJPY plunge! 📉 With over 400 pips lost last week and key support at 146.50 tested, what's next for this volatile pair? Stay informed, stay ahead. #ForexAnalysis #USDJPY #MarketWatch
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- USDJPY plunged over 400 pips last week due to weak US economic data.
- Poor Non-Farm Payroll (NFP) numbers contributed to the decline.
- Market uncertainty looms over whether USDJPY will continue its downward trajectory.
Exploring the Recent Plunge of USDJPY: Is Further Decline Imminent?
USDJPY, a currency pair often influenced by the economic performance of the United States and Japan, witnessed a significant downturn last week. Plummeting over 400 pips, this sharp decline followed a string of disappointing US economic data, prompting concerns about the strength of the US dollar.
One of the key factors contributing to this downward spiral was the release of poor Non-Farm Payroll (NFP) numbers. These figures, indicating weaker-than-expected job growth, sent shockwaves through the forex market, causing USDJPY to approach a critical support level at 146.50.
The breach of this support level raises questions about the future direction of USDJPY. Will the pair continue its descent, or is a reversal on the horizon? To answer this, it's crucial to assess the broader economic landscape and the factors driving market sentiment.
Upcoming data this week could be make or break for the greenback. Consumer Price Index (CPI) m/m is forecast to come in above the previous reading at 0.4% over 0.3%. However, a softer inflation rate will suggest that the Fed could cut rates sooner rather than later.
This round of data is pivotal in the race of lowering interest rates, positive data would boost the USD and go against the narrative from the Federal Reserve.
USDJPY
The price on the chart has traded through multiple technical levels and some observations included:
- Price fell over 400 pips showing the strength of the JPY and weakness of the USD.
- Price found support towards the key level of 146.50.
- Sellers may wait for prices to trade higher before looking for short opportunities.
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