Will US Housing Data Impact the USD/JPY?

Later in the Wednesday session, new home sales will garner investor interest. Economists expect new home sales to slide by 5.1% in August after a 10.6% surge in July. A larger-than-expected decline may fuel concerns about the US economy.

Economists consider the US housing market a litmus test of the economy. Deteriorating housing market conditions may impact consumer confidence, private consumption, and the economy. A more marked decline in new home sales may push the USD/JPY pair toward the 142.5 level.

Short-term Forecast for USD/JPY

USD/JPY trends will hinge on central bank commentary and Friday’s Personal Income and Outlays Report. Dovish Fed comments, softer inflation, and weaker-than-expected personal income/spending may reignite concerns of a hard landing. Speculation about a US economic recession may drive Yen demand.

Investors should remain alert, with economic indicators and central bank commentary to dictate demand for the USD/JPY pair. Monitor real-time data, central bank views, and expert commentary to adjust your trading strategies accordingly. Stay ahead of the market with our expert insights.

USD/JPY Technical Analysis

Daily Chart

The USD/JPY hovers well below the 50-day and 200-day EMAs, confirming bearish price trends.

A USD/JPY break above the 143.495 resistance level could support a move toward 145. Furthermore, a return to 145 may give the bulls a run at the 145.891 resistance level.

Bank of Japan commentary, US new home sales, and Fed chatter require consideration.

Conversely, a fall through 142.5 could bring the 141.032 support level into play.

The 14-day RSI at 44.10 suggests a USD/JPY drop to the 141.032 support level before entering oversold territory.