Japanese Yen Remains Weak Amid Strong Dollar

Fundamental Analysis

* Fading Yen: The Japanese Yen was trading in negative territory against the dollar as upbeat U.S manufacturing data and job openings data this week indicated that the US economy remains robust, lifting the Greenback. The business activity in the US manufacturing sector continued to contract, albeit at a softer pace in November, with the ISM Manufacturing PMI rising to 48.4 from 46.5 in October. This reading came in better than the market expectation of 47.5. On top of that, U.S JOLTS Job Opening data also exceed expectation with the reading came in at 7.744M against market expectation of 7.510M.

Technical Analysis

* Technical Breakout: USDJPY was traded higher following prior rebound from its lows. MACD which illustrate bullish bias signal with the formation of golden cross suggest the pair to likely extend its gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 151.750. Conversely, a potential reversal is also to be expected and the price could head back towards 146.950.

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Potential Risks

Looking ahead, investors will focus on this week’s key U.S. economic data releases such as ADP Nonfarm Employment Change, Nonfarm Payrolls, and the Unemployment Rate, to gauge the market’s direction and sentiment.

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Monitoring

Stay updated on US data and Japan data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.