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The Japanese consumer is showing signs of concern, given the uncertain economic picture. Household spending plunged 5.1% in September, its first decline in 2019.
In the U.S., last week’s highlights were key employment reports. Nonfarm payrolls soared to 266 thousand, up from 128 thousand a month earlier. Wage growth remained steady at 0.2%, just shy of the forecast of 0.3%. As well, the unemployment rate dropped from 3.6% to 3.5%. This beat the forecast of 3.6%. On the consumer front, UoM Consumer Sentiment climbed to 99.2, up sharply from 95.7 a month earlier.
Updates:
We start with resistance at 112.25.
111.62 was last active in April. 110.62 is next.
109.73 has some breathing room after this week’s losses by USD/JPY. 109.35 is close by.
108.70 is an immediate resistance line. 108.10 is next.
107.30 (mentioned last week) switched to support in early October.
106.61 is next.
105.55 has held in support since late August. It is the final support level for now.
I remain neutral on USD/JPY
The U.S. and China have yet to reach an agreement on the trade front, which is keeping risk appetite in check. Any signs of progress in the talks could weigh on the safe-haven yen. The Japanese economy remains weak and the yen is not all that attractive for investors.
Further reading:
Safe trading!
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