Markets Analysis

Fundamental Analysis

• U.S. stock indices adjusted lower, with USDJPY moving in the 151 JPY range.
• Divergence appears in gold’s daily chart.
• The EUR/USD and GBP/USD fell, with the RSI dropping below 50.

USDJPY Technical Analysis

Analyzing the daily chart of USDJPY, it surpassed the recent high of 150.85 JPY, climbing to 151.86 JPY. The RSI is at 60, suggesting a stable upward trend. There are concerns about currency intervention, but the last intervention occurred when the RSI was around 70-80, indicating overheating. Currently, at around 60, there is no overheating yet. It is speculated that intervention may be difficult or impossible at this point. The focus is on whether it will exceed the past highest value of 151.95 JPY. If it reaches the 152 JPY range, it could mark a new 30-year low for the yen, leading to continued movement in a new price range. Preparation for further depreciation of the yen is desired.

Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour chart of USDJPY, it shows consolidation in the early 151 JPY range, lacking short-term direction. However, a gradual uptrend is confirmed by observing the lows. The RSI rebounds at 50 multiple times, indicating strong buying interest. There is a view that it may test the 152 JPY range this week, and fundamental analysis does not change the direction towards yen depreciation. Entering a buy in the mid-151 JPY range requires courage, hence the preference for buying on dips. The day trading strategy is to place a buy limit order at 150.85 JPY, with a take-profit at 151.85 JPY and a stop-loss at 150.65 JPY.

Support and Resistance Lines

The following are the support and resistance lines to consider:

152.00 JPY – Psychological Price/Round Number

151.25 JPY – Pivot Point

150.40 JPY – Past Low

Market Sentiment

USDJPY Sell: 76%, Buy: 24%

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.