USD/JPY Expected to Decline to 156.7 in Asian Session Amid Key US Economic Data Releases

Monday, 03/06/2024 | 06:31 GMT+1

USD/JPY Set to Decline to 156.7 in Asian Session Amid Key US Economic Data Releases

The USD/JPY pair is expected to see a downward movement in the Asian session on Monday, falling from 157.440 to 156.7. In the bigger picture, there is ongoing push-and-pull activity around the 157.00 mark, reflecting market indecision and the influence of upcoming economic data.

Key Factors Influencing USD/JPY This Week:

1. ISM Manufacturing and Services Reports: The week kicks off with the release of the ISM Manufacturing PMI. As a leading indicator of economic health, this report is closely watched by traders. A higher-than-expected reading typically strengthens the US dollar, while a lower reading can weaken it. This will be followed by the ISM Services PMI, providing further insights into the economic landscape.

2. ADP Employment Numbers: Mid-week, the ADP employment numbers will offer a glimpse into private sector job growth. This report is often seen as a precursor to the more comprehensive non-farm payrolls report. Strong ADP numbers can bolster the US dollar, impacting the USD/JPY pair.

3. Initial Weekly Jobless Claims: Also on the radar are the initial weekly jobless claims, providing data on the number of Americans filing for unemployment benefits. This indicator helps gauge the health of the labor market, influencing trader sentiment and currency movements.

4. Non-Farm Payrolls Report: The week culminates with the highly anticipated non-farm payrolls report on Friday. This comprehensive employment report is a significant market mover. It includes data on job creation, the unemployment rate, and average hourly earnings. A strong report can lead to a stronger US dollar, while a weaker report may pressure the currency.

Trading Strategy for Beginners:

For beginner forex traders, this week presents a prime opportunity to observe how major economic data impacts currency movements. The anticipated decline of USD/JPY to 156.7 suggests a bearish outlook in the short term. Traders should:

Learn Forex Trading USDJPY

  • Stay Informed: Keep up-to-date with the latest economic releases and market reactions. Reliable financial news sources and economic calendars can be invaluable.

  • Use Technical Analysis: Utilize charts to identify key support and resistance levels. The 157.00 mark is crucial, and monitoring price action around this level can provide trading signals.

  • Manage Risk: Employ risk management strategies such as stop-loss orders to protect against unexpected market volatility.

  • Practice Patience: Avoid overtrading and wait for clear signals before entering trades. Market reactions to economic data can be unpredictable.

In conclusion, the USD/JPY pair is poised for a decline to 156.7 in the Asian session on Monday, with significant movements expected throughout the week due to key US economic data releases. Beginner traders should leverage this period to enhance their understanding of market dynamics and refine their trading strategies.

Ceo.codes