Japanese Yen Futures (6J Mar 2025): Key Price Levels and Events to Watch [Jan 02, 2025]

The Japanese Yen Futures (6J March 2025) are trading at 0.006438, while the USD/JPY pair on FXCM is at 156.64. It’s important to remember that rising Japanese Yen Futures correlate with a declining USD/JPY pair. Below are the key price levels and major events that could shape the Japanese yen market today and in the days ahead.

Bullish Map: Key Levels for Japanese Yen Futures

• 0.0064265: A critical support level, previously the Value Area High (VAH) of December 20. After price recently crossed above it, this level indicates bullish momentum for Japanese Yen Futures.
• Yesterday’s VWAP: At approximately 0.00643, this could serve as immediate support.
• Today’s Developing VWAP: Positioned at 0.00642, it’s a key area for monitoring intraday pullbacks in Japanese Yen Futures.
• 0.0064565: The VWAP of December 19, a vital resistance level likely to be tested.
• 0.006465: The VAH of December 19, another critical resistance point, especially as Japanese Yen Futures approached but failed to breach it recently. A retest of this level is likely.
• 0.0064955: This higher resistance level may attract profit-takers, leading to potential pullbacks.

Bearish Map: Key Levels for USD/JPY Strength

• 0.0063795: The Value Area Low (VAL) of December 30 serves as the “line in the sand.” If Japanese Yen Futures drop below this level, bearish sentiment would dominate, signaling strength in the USD/JPY pair.

Outlook: Japanese Yen Futures and USD/JPY Pair Trends

The Japanese Yen Futures market appears to be forming a base for a bullish reversal. While temporary dips below 0.00643 or 0.00642 may occur, as long as prices remain above 0.0064265, the broader outlook remains bullish. A sustained move above 0.006465 could further solidify bullish momentum, targeting higher levels like 0.0064955.

In contrast, a break below 0.0063795 would shift the narrative, favoring a stronger USD/JPY pair and bearish sentiment for Japanese Yen Futures.

Key Events That Could Move the USD/JPY Pair

Several major U.S. economic events in the coming days could influence both the USD/JPY pair and Japanese Yen Futures:

• Jan 3 (Tomorrow): ISM Manufacturing PMI – This report will provide insights into U.S. economic activity and could impact the USD/JPY pair.
• Jan 7: ISM Services PMI and JOLTS Job Openings – These are critical indicators of U.S. economic strength and labor market dynamics, both of which can affect the USD/JPY pair.
• Jan 8: Consumer Confidence Report – This data often drives market sentiment and USD strength, which could influence Japanese Yen Futures and the USD/JPY pair.

What Japanese Yen Traders Should Be Looking Out For

• Above 0.0064265: Bullish momentum prevails for Japanese Yen Futures, with targets at 0.0064565 and 0.0064650.
• Below 0.0063795: Bears take control, signaling potential USD/JPY pair strength.
• Key Events: Watch for the impact of ISM Manufacturing, Services PMI, JOLTS, and Consumer Confidence data, which are all likely to influence both Japanese Yen Futures and the USD/JPY pair in the coming days.

Always trade Japanese Yen Futures and the USD/JPY pair at your own risk, and manage positions carefully. Always trade at your own risk only and visit ForexLive.com for additional views.

This article was written by Itai Levitan at www.forexlive.com.