Market Update: Japanese Yen Depreciates Amid Manufacturing PMI Release

  • The Japanese Yen (JPY) weakened following the release of the Manufacturing Purchasing Managers Index (PMI) by Jibun Bank.
  • The headline Jibun Bank Japan Manufacturing PMI decreased to 49.2 in October from 49.7 in September.
  • US Nonfarm Payrolls are expected to rise by 113,000 jobs in October, down from the previous count of 254,000.

On Friday, the Japanese Yen (JPY) saw a decline in value after the release of the Manufacturing PMI data by Jibun Bank and S&P Global. The USD/JPY pair also experienced a drop as the JPY strengthened post-comments from Bank of Japan (BoJ) Governor Kazuo Ueda, hinting at a potential rate hike in December.

Insights on Japanese Manufacturing PMI

The headline Jibun Bank Japan Manufacturing PMI for October stood at 49.2, indicating a decrease from 49.7 in September. This figure suggests a continued decline in Japanese manufacturing production at the beginning of the fourth quarter of 2024, with both output and new order inflows decreasing at more pronounced rates.

Japanese Chief Cabinet Secretary Yoshimasa Hayashi expressed his confidence in the Bank of Japan’s ability to work closely with the government to implement suitable monetary policies that align with achieving price stability and sustainability.

Daily Market Movers: USD/JPY Dynamics and Economic Indicators

  • The USD/JPY pair saw gains as the US Dollar (USD) broke its recent losing streak amid market caution ahead of the upcoming US presidential election.
  • US Personal Consumption Expenditures (PCE) Price Index data revealed an increase in core inflation by 2.7% year-over-year in September.
  • The Bank of Japan maintained its short-term interest rate target at 0.25%, in line with market expectations for stability.

Furthermore, the BoJ’s Outlook Report for Q3 highlighted the central bank’s commitment to raising policy rates based on economic and price forecasts to achieve its 2% inflation target sustainably.

Technical Analysis: USD/JPY Forecast

The USD/JPY pair, currently trading around 152.40, faces resistance at the lower boundary of an ascending channel at 152.50. Re-entering this channel could push the pair towards the upper boundary near 158.30.

If the pair breaks below the channel, support levels are expected around the 14-day Exponential Moving Average (EMA) at 151.50 and the psychological level of 150.00.

Japanese Yen Price Today

The Japanese Yen experienced fluctuations against major currencies today, with the highest weakness observed against the British Pound. For detailed percentage changes, refer to the table below.

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