Recent Performance:
• Weekly Movement: Over the past week, USD/JPY declined by approximately 1.16%, reflecting a downward trend.
Technical Analysis:
• Support and Resistance Levels: The pair's decline from 158.86 continued last week but found support at 148.55, leading to a recovery. The initial bias remains neutral this week. A break below 148.55 could target the 61.8% retracement level of 139.57 to 158.86 at 146.32. Conversely, a break above 150.92 would indicate short-term bottoming and could lead to a stronger rebound.
Fundamental Factors:
• US Economic Indicators: The U.S. labor market has shown signs of softening, with recent data indicating a slowdown in job creation and wage growth. These developments have raised concerns about the overall economic momentum, potentially influencing the Federal Reserve's monetary policy decisions.
• Japanese Economic Indicators: Japan's wage growth data is under scrutiny, as it may signal potential shifts in the Bank of Japan's (BoJ) monetary policy stance. Stronger wage growth could prompt the BoJ to consider tightening its accommodative policies, impacting the yen's value.