USD/JPY Rises, Dollar Buying Triggered by Comments from Federal Reserve Board Member【January 17, 2024】
Fundamental Analysis
Fed Governor Waller Suggests Cautious Rate Cuts, Inducing a Stronger Dollar
USD/JPY Rises to the 147 JPY Range, Approaching the Fibonacci 61.8%
U.S. Economic Indicators at Lowest Since Pandemic, Gradual Deterioration in the U.S. Economy
USDJPY Technical Analysis
Analyzing the USD/JPY daily chart. Currently trading in the 147 JPY range, touching the 61.8% resistance line. Cautious remarks on rate cuts by a Fed Governor have induced dollar buying, leading to a notable trend of a weaker yen and stronger dollar. RSI is at 57, indicating a robust upward trend.Breaking above 147.45 JPY could set the stage for the next major target in the 150 JPY range. Additionally, the retreat in expectations for a Bank of Japan rate hike is contributing to the stronger dollar.
Day Trading Strategy (1-Hour Chart)
Analyzing the USD/JPY 1-hour chart. A strong upward trend is forming, reaching the 61.8% Fibonacci retracement on the daily chart. Battle expected at this level. The 24-moving average was previously a focus but is now diverging.Market sentiment shows 80% in selling positions, indicating a rise triggered by stop-loss catching, but selling pressure remains strong. RSI is at 75, increasing the likelihood of a drop on some trigger.Both fundamentally and technically, the trading approach favors buying. Day trading strategy: buying on dips, entry point at 146.75 JPY, target at 147.40 JPY, and stop loss at 146.35 JPY.
Support and Resistance Lines
Upcoming significant support and resistance lines:
147.45 JPY: Fibonacci 61.8%
Market Sentiment
USDJPY Sell: 80%, Buy: 20%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)UK Consumer Price Index16:00U.S. Core Retail Sales22:30
*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.
