• The USD/JPY bias remains bearish if it stays below the median line (ml).
• A new lower low activates more declines.
• The US data could change the sentiment today.

The USD/JPY price registered a massive drop on Thursday as the US dollar tumbled. Meanwhile, the Japanese Yen got a boost from BoJ’s hawkish comments. The pair is trading at 147.88 at the time of writing, above today’s low of 147.52.

The downside pressure remains high, so a deeper drop is still in the cards. The greenback is strongly bearish after Fed Chair Powell Testifies. Yesterday, the ECB left the monetary policy unchanged as expected but failed to change the sentiment.

Today, the Japanese economic data came in mixed. The Economy Watchers Sentiment was reported at 51.3 points, above the 50.6 points expected. Leading Indicators came in at 109.9%, above the 109.7% expected, and the Current Account jumped from 1.81T to 2.73T, above the 2.07T estimated. Bank Lending rose by 3.0% less compared to the 3.2% growth forecasted, while Household Spending reported a 6.3% drop.

The US data should be decisive and could change the sentiment today. The Non-Farm Employment Change is expected at 198K. The Average Hourly Earnings may report a 0.2% growth, while the Unemployment Rate could remain at 3.7%.

Technically, the bias remains bearish as long as it stays below the descending pitchfork’s median line (ml). The sell-off was paused at 147.61 downside obstacle (historical level). It has registered only false breakdowns, signaling exhausted sellers. Staying above this static support and returning above the median line (ml) may announce a new bullish momentum.

A new lower low, taking out the 147.61 level, activates more declines. The 147.00 psychological level represents a potential target if the rate continues to drop.

https://www.forexcrunch.com/blog/2024/03/08/usd-jpy-price-pauses-downside-147-61-ahead-of-us-nfp/