USD/JPY Falls to Mid-149 JPY, Uptrend Enters Adjustment Phase【November 20, 2023】
Fundamental Analysis
USD/JPY Falls to Mid-149 JPY, Enters Adjustment Phase
Focus on whether USD/JPY will break below Ichimoku Cloud’s base and conversion lines, and if RSI falls below 50
U.S. stock indices take a breather, despite growing expectations of an end to rate hikes, but are in an overbought range
USDJPY Technical Analysis
Analyzing the daily chart of the USD/JPY. Movements below Ichimoku Cloud’s base and conversion lines are observed, with early November lows of 148.80 JPY and 148.50 JPY being key levels. RSI is on a gradual downward trend, with breaking below 50 being a crucial indicator for future direction.
If RSI rebounds at 50, there’s a possibility of an upward move. The proximity of the Ichimoku Cloud also suggests it could act as a lower support, making a rapid appreciation of the yen unlikely.
However, considering the sharp drop to 129 JPY in 2022, caution is needed with market movements. This week, with U.S. markets closed for Thanksgiving in the latter half, increased volatility is expected in the first half of the week.
Day Trading Strategy (1-Hour Chart)
Analyzing the 1-hour chart of the USD/JPY. Currently, the USD/JPY is showing a typical downward trend, having hit a low of 149.19 JPY before rising to 149.90 JPY.
This movement, observed amidst increasing probabilities of the end of the U.S. interest rate hike cycle, indicates instability in the market, as the Bank of Japan has yet to make a move. The daily chart suggests a tendency towards selling.
For day trading, a strategy of selling on rallies is recommended. Entry point at 150.15 JPY, target profit at 148.65 JPY, and a stop-loss line at 150.50 JPY.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
148.50 JPY – A major support line
Market Sentiment
USDJPY – Sell: 52%, Buy: 48%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)German Producer Price Index16:00
*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.
