USD/JPY Rises as Nvidia’s Sales Outlook Drives AI Boom【February 22, 2024】
Fundamental Analysis
Nvidia’s sales outlook exceeds expectations, Nasdaq rebounds
Stock price surge in AI boom supported by data
FRB suggests no rush to lower US interest rates, leading to dollar strength
USDJPY Technical Analysis
USDJPY rebounds at the conversion line of Ichimoku Kinko Hyo, rising to around 150.40 JPY. There is considerable buying interest below 150 JPY, stabilizing the downside. Additionally, there are currently no yen-buying catalysts, making the dollar prone to strength.
While there may be intervention concerns around 152 JPY, it’s expected that the dollar will lean towards strength today, given the robust US economy and the FRB’s indication of no rush for rate cuts. The RSI stands at 61, indicating a solid upward trend despite hovering around the 150 JPY level, which is not in the overbought territory but rather signifies a firm bullish trend.
Day Trading Strategy (1-Hour Chart)
Analyzing the 1-hour chart of USDJPY, the dollar is advancing following the FOMC minutes released earlier today, indicating the FRB’s cautious approach to rate cuts and Nvidia’s sales outlook surpassing expectations amidst the AI boom.
Considering a potential further uptick in the stock market today, it’s inclined towards dollar buying. Therefore, it’s preferred to trade USDJPY with a bullish bias. Specifically, buy on dips around 150.25 JPY, with a target exit around 150.65 JPY and a stop loss at 149.95 JPY.
Support and Resistance Lines
The following support and resistance lines should be considered:
150.70 JPY – Major resistance level150.27 JPY – Monthly support level
Market Sentiment
USDJPY Sell: 68% Buy: 32%
Today’s important economic indicators
Economic indicators and eventsJapan timeNikkei Services PMI9:30Eurozone Consumer Price Index19:00US Initial Jobless Claims22:30ISM Non-Manufacturing PMI23:45US Existing Home SalesMidnightUS Crude Oil Inventories1:00 (next day)
*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.
