The Japanese Yen (JPY) remains steady against the US Dollar (USD) as Labor Cash Earnings in Japan saw a 3.6% year-on-year growth in July. While this was a slight slowdown from the previous month, it was the highest increase since January 1997, surpassing market expectations. This positive performance has led to speculation that the Bank of Japan (BoJ) may consider another interest rate hike before the end of 2024.
BoJ Board Member Hajime Takata mentioned that the domestic economy is on a moderate recovery path, despite some weak signals. The stock and FX markets have experienced volatility, but there is optimism about achieving the inflation target in the near future.
The US Dollar has found support from rising Treasury yields, although concerns arise from the lower-than-expected US JOLTS Job Openings data for July. Traders are now awaiting the US ISM Services PMI and Initial Jobless Claims reports.
Market Updates: Japanese Yen Holds Strong Amid Real Wage Growth
- San Francisco Federal Reserve President Mary Daly suggests a potential rate cut by the Fed due to declining inflation and a slowing economy.
- Atlanta Federal Reserve President Raphael Bostic emphasizes the need to avoid a restrictive policy stance for too long.
- Japan’s Chief Cabinet Secretary Yoshimasa Hayashi monitors market developments closely in coordination with the BoJ.
- US JOLTS Job Openings decline in July, signaling a slowdown in the labor market.
- Japan announces energy subsidies to counter rising costs.
- US PCE Price Index shows a slight increase in July.
Technical Analysis: USD/JPY Faces Resistance Below 144.00
The USD/JPY pair hovers around 143.80, with a bearish trend indicated by the nine-day EMA below the 21-day EMA. The RSI near the 30 level suggests ongoing bearish momentum but hints at a potential uptick in the near future. Support levels lie at 141.69 and 140.25, while resistance is expected at 145.00 and 146.32.
USD/JPY: Daily Chart
Japanese Yen Performance Today
The Japanese Yen (JPY) has shown strength against major currencies today, particularly against the Euro. For detailed percentage changes, refer to the table below:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.05% | -0.01% | -0.23% | 0.23% | 0.03% | 0.04% | -0.05% | -0.00% |
| EUR | -0.05% | -0.27% | 0.27% | 0.00% | 0.00% | -0.06% | -0.06% | |
| GBP | 0.00% | 0.04% | 0.23% | 0.05% | 0.06% | -0.01% | -0.02% | |
| JPY | -0.23% | -0.27% | -0.23% | -0.27% | -0.27% | -0.18% | -0.22% |
Labor Cash Earnings (YoY) Indicator Overview
The Labor Cash Earnings indicator reflects the average income of regular employees in Japan, excluding capital gains. A higher reading is positive for the Japanese economy, while a lower-than-expected result can have a bearish impact on the Japanese Yen (JPY).
For more information on this indicator, click here.