The US Jobs Report for August showed an increase of 142,000 jobs. This data will likely have some impact on the USD/JPY pairing, but it is not the only factor to consider.
Consumer Sentiment Index and US Dollar Demand
The Michigan Consumer Sentiment Index, set to be released on September 13, is expected to rise from 67.9 in August to 68.0 in September. An increase in consumer confidence could lead to higher consumer spending, potentially boosting the US economy. This could also influence the demand for the US dollar.
Inflation and Labor Market Data Impact
While the Jobs Report is important, the inflation and labor market data will have a greater impact on the USD/JPY pairing. Soft inflation and weaker labor market data in the US could push the USD/JPY below 140. This highlights the importance of monitoring economic indicators from both Japan and the US.
There are expectations of a 50-basis point Fed rate cut in September, which could affect the USD/JPY pairing. If this cut materializes, we may see the USD/JPY fall below 140. It is crucial for investors to stay informed and adjust their trading strategies accordingly.
From a technical perspective, the USD/JPY remains below the 50-day and 200-day EMAs, indicating bearish price trends. A break above the 143.495 resistance level could signal a move towards 145, while a return to 145 may lead to a test of the 145.891 resistance level. On the flip side, a drop below the 141.032 support could result in a decline below 140 levels.
The 14-day RSI currently stands at 32.08, suggesting that the USD/JPY may fall to the 141.032 support level before entering oversold territory. This information could be useful for investors looking to make decisions based on technical indicators.
The US Jobs Report, the Consumer Sentiment Index, inflation, labor market data, and technical analysis all play a role in determining the direction of the USD/JPY pairing. It is essential for investors to carefully consider all these factors and stay updated on the latest developments in order to make informed trading decisions.