USD/JPY Rises, Strong US Dollar Influence Persists【January 4, 2024】
Fundamental Analysis
The minutes of the US FOMC suggest a rate cut policy during 2024
US job openings decrease, and manufacturing activity contracts, cooling the US economy
USD/JPY temporarily reaches 143.70 JPY, but the 240-day moving average line poses a barrier
USDJPY Technical Analysis
Analyzing the daily chart of USD/JPY. A breakout above the descending trendline is confirmed, with the 240-day moving average line acting as resistance. 2024 started with a stronger USD, defying expectations of a weaker dollar.143.50 JPY is a key focus for future movement, and whether it can break above this level is noteworthy. Despite the suggested rate cuts in 2024, movements towards a weaker dollar are limited.RSI is hovering around 42, with the focus on whether it can exceed 50.
Day Trading Strategy (1-Hour Chart)
Analyzing the 1-hour chart of USD/JPY. An upward trend continues, rising to 143.70 JPY, but resistance is strong above this level. A pullback for profit-taking is observed ahead of significant daily resistance lines.After reaching 70, the RSI fell to 58, and a breakout below the trendline drawn on the RSI suggests a potential drop to the 240-day moving average line. Currently, while the dollar is weakening, the yen is also weakening. In the short term, a rebound for buying is considered.Day trading strategy involves considering a dip-buying at 142.30 JPY, settling at 142.85 JPY, and setting a stop loss at 141.75 JPY.
Support and Resistance Lines
Upcoming resistance lines to consider:
143.70 JPY – Recent high
Market Sentiment
USDJPY Sell: 59%, Buy: 41%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)German Consumer Price Index22:00US ADP Employment Report22:15US Unemployment Insurance Claims22:30Crude Oil InventoryMidnight
*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.
