USD/JPY Seeks Direction, U.S. Employment Figures Exceed Market Expectations【January 8, 2024】
Fundamental Analysis
U.S. employment statistics exceed market expectations, causing volatility in the Dollar Index
USD/JPY approaches 146 JPY temporarily before falling back, currently around 144.50 JPY
Employment numbers increase, but U.S. manufacturing economic index weakens
USDJPY Technical Analysis
Analyzing the daily chart of USD/JPY. Using the Fibonacci retracement, it’s observed that the price reacts at the 50% level. 146 JPY corresponds to this 50% level, serving as an important threshold. Whether this level is breached or not will determine future trends.
Support lines also exist around the 38.2% retracement, suggesting a strong lower limit for the market. The RSI is at 48, indicating a balance between bullish and bearish pressures. Currently, the trend towards a stronger dollar is somewhat pausing.
Day Trading Strategy (1-Hour Chart)
Analyzing the 1-hour chart of USD/JPY. A reaction is seen at the 38.2% Fibonacci retracement, indicating a strong lower limit below 144.30 JPY. The RSI is hovering around 53, suggesting the next direction will depend on whether it falls below 50 or rebounds.
After reaching a high near 146 JPY, a large bearish candle appeared, indicating significant selling. If U.S. interest rate cut speculations rise, USD/JPY may tend to move downward.
Considering a short-term short position. After confirming a break below 144.65 JPY, initiate a new sell; the settlement target is 143.75 JPY, with a stop loss at 145 JPY.
Support and Resistance Lines
Upcoming resistance lines to consider:
146.65 JPY – 23.6% price in Fibonacci retracement144.40 JPY – Important price level on a monthly basis
Market Sentiment
USDJPY Sell: 57%, Buy: 43%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)EU Unemployment Rate19:00
*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.
