USD/JPY Range Narrows, Focus on Trendline Break【February 20, 2024】
Fundamental Analysis
Forex market volatility decreases due to US holiday
USD/JPY holds firm below 149.90 USD
USDJPY Technical Analysis
Analyzing the daily chart of USD/JPY, it is supported by the Ichimoku conversion line. The price holds firm below 149.90 USD, showing resilience with about four rebounds recently. The RSI is at 61, maintaining a strong upward momentum.
Despite the reduced range due to the US stock market holiday yesterday, a trigger for a stronger USD could reignite the bearish trend for JPY. This week is marked by the scheduled release of the FOMC meeting minutes, which could introduce volatility.
Furthermore, remarks from officials could also lead to a stronger USD, warranting caution.
Day Trading Strategy (1-Hour Chart)
Analyzing the 1-hour chart of USD/JPY, 149.90 USD acts as a support line, firming the lower side. With the high decreasing, a breakout of the downward trendline could form an ‘N’ shape.
In this case, the target price could be around 151.19 USD. Moving within a small cloud on the 1-hour chart, a breakout from the cloud could signal an uptrend. The RSI is at 54, indicating a level supportive of an upward trend.
The day trading policy is to buy, considering entry upon breaking out of the Ichimoku cloud, aiming to settle around 150.60 USD. A stop would be placed if it falls below 149.90 USD.
Support and Resistance Lines
Upcoming significant support and resistance lines:
149.90 USD – Main support line
Market Sentiment
USDJPY Sell: 58% Buy: 42%
Today’s important economic indicators
Economic indicators and eventsJapan timeAustralian Monetary Policy Meeting Minutes9:30Canadian Consumer Price Index22:30US Leading Economic IndexMidnight
*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.
