USD/JPY falls, U.S. ISM index falls short of forecast, concerns about economic deterioration?【June 6, 2023】
Fundamental Analysis
U.S. ISM Manufacturing Index falls short of market expectations; renewed fears of economic deterioration weakens dollar
Major U.S. stock indexes slightly lower, low volatility market continues
Australian policy rate is scheduled to be released today; no rate hike is expected
USD/JPY rallied to JPY 140.48 but fell back after the ISM index release, hovering in the low JPY 139 range
Day Trade Strategy (Hourly)
The day-trade policy is range trading. The reaction to the Fibonacci level can be seen.JPY 139.37 corresponds to 61.8% and rebounded once. However, a break out of this price range could lead to a decline to around JPY 138.75. The atmosphere is likely to be that of an adjustment market to await next week’s FOMC and BOJ policy meeting.
Fibonacci Levels
The price fell back 23.6% at JPY 140.48 and rebounded 61.8% to JPY 139.37. It can be concluded that the downward trend is continuing in the short term. If the price falls below JPY 138.37, we should watch for a decline to JPY 138.97 and JPY 138.75, the prices of major support zones.
Candlesticks
Looking at the candlesticks, we can see long beards to the upside and wrapping legs at the highs, suggesting that the upside is heavy.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
JPY 139.37 – Fibonacci levelJPY 138.75 – Lower limit of the past range price
Market Sentiment
USDJPY Sell: 68% Buy: 32%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)Australian Policy Rate13:00
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
