USDJPY Rises, BOJ Policy Meeting Indicates Yen Weakness【June 14, 2024】
Fundamental Analysis
The BOJ policy meeting is being held, and historically, the yen tends to weaken on the days of these meetings
The US PPI fell short of expectations, indicating a slowdown in US inflation
Gold faces selling pressure, dropping to the 2300 USD range
USDJPY technical analysis
Analyzing the daily USDJPY chart, a triangle pattern is forming with the upper boundary at 157.70 JPY and rising lows. Today’s BOJ policy meeting is expected to discuss reducing the amount of government bond purchases, but a significant reduction is unlikely.
Historically, USDJPY tends to weaken during BOJ policy meetings. The focus will be on whether it can break through 157.70 JPY. It has rebounded from the 28-day moving average, and if it breaks above 157.70 JPY, it could target 158.25 JPY.
Attention will also be on whether Governor Ueda will mention future interest rate outlooks during his press conference.
Day trading strategy (1 hour)
Analyzing the 1-hour chart, USDJPY fluctuates repeatedly, reacting to economic indicators. The BOJ policy meeting is scheduled today, with no changes in policy rates expected. Consequently, some overseas investors anticipating this may sell yen, leading to potential yen weakness today. A reduction in the amount of government bond purchases is expected to be gradual.
Focus on whether it can break through 157.70 JPY. Trade cautiously during Tokyo hours. In the broader perspective, a weakening yen means picking up at the lows carefully.
Support/Resistance lines
The following support and resistance lines should be considered going forward:
157.70 JPY – Recent High
Market Sentiment
USDJPY – Sell: 60% Buy: 40%
Featured Currency Pair of the Week (GBPNZD)
The GBP to NZD is rising. It is moving near the 200-day moving average, determining its direction. It has broken the weekly uptrend line, indicating a slight pound depreciation. The recent low is around 2.06 USD. Pay attention to whether it breaks 2.06 NZD, with the 200-day moving average acting as resistance.
Today’s important economic indicators
Economic indicators and eventsJapan timeBOJ Policy Rate AnnouncementAround 12:00BOJ Governor Press Conference15:30University of Michigan Consumer Sentiment Index23:00FRB Monetary Policy ReportMidnight
*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.
