The USDJPY currency pair currently finds itself in a neutral-to-bearish stance, trading below the 155.65 level. Investors and analysts are closely monitoring potential movements, as a bullish breakout could propel the pair towards the 157.15-158.35 range. However, failure to maintain support above the 153.30-154.25 zone might lead to a further decline towards 151.50-152.17. As traders assess these technical levels, the upcoming U.S. economic data releases are expected to heighten market volatility.
Amid this backdrop, market participants are also keeping a watchful eye on the Federal Reserve's influence. While there is an expectation for a pause in March, May's meeting remains uncertain. The release of key U.S. data, including ISM PMIs on Monday and Wednesday, along with the first nonfarm payrolls report of the year, will play a crucial role in shaping investor sentiment. The nonfarm payrolls are anticipated to reveal slower job growth at 170,000, with the unemployment rate steady at 4.1%.
The GBPUSD has shown resilience, aided by former President Trump's recent decision to spare the UK from tariffs, which has limited its decline compared to EURUSD and AUDUSD. Despite this development, sterling remains under pressure as it struggles to reclaim the 1.2350 level. A failure to do so could result in further downside movement towards the 1.2100-1.2160 range.
The broader currency market is also contending with trade tensions following recent tariff impositions by the US on Canada, Mexico, and China. These measures have sparked trade war concerns, adding another layer of complexity to market dynamics. In response to these developments, the US Dollar has emerged as a safe haven asset, drawing investor attention amid heightened uncertainty.