USDJPY Continues to Rise, Gradual Yen Selling【June 18, 2024】
Fundamental Analysis
Yen selling continues as the policy to reduce government bond purchases is postponed
USDJPY temporarily rises to around 157.97 JPY
USDJPY technical analysis
USDJPY continues to rise with low volatility. It has risen to around 157.95 JPY. The pair is moving above the +2σ line of the Bollinger Bands, indicating a continued upward trend. It has surpassed the high of 157.70 JPY, forming an upward trend according to Dow Theory.
On the daily chart, the next high is expected to be 160.18 JPY. Although it’s uncertain whether it will reach 160 JPY, forex intervention is unlikely, and there is no significant expectation of it. There is a vague feeling due to the lack of specific policies on government bond purchases, leading to gradual yen selling.
Day trading strategy (1 hour)
Analyzing the 1-hour chart of USDJPY, it is moving around 157.65 JPY. When it reaches the 158 JPY level, profit-taking is expected. The Nikkei 225 has dropped significantly, but there are no major events causing this. The range between 155 JPY and 158 JPY is likely to continue for some time. Consider buying at deep dips.
The day trading strategy is to buy. Consider buying around 157.15 JPY. The target for taking profits is just below 158 JPY, and the stop should be placed below 157 JPY.
Support/Resistance lines
The following support and resistance levels should be considered in the future:
158.25 JPY: Significant high
157.96 JPY: Recent high
Market Sentiment
USDJPY Sell: 63% / Buy: 37%
Featured Currency Pair of the Week (USDCAD)
US Dollar to Canadian Dollar has fallen for two consecutive days. The market lacks direction. The RSI is at 52, indicating no clear direction and forming a range market. There are no notable events scheduled for the US or Canada this week. Currently, it is above the 28-day moving average. The crude oil market surged yesterday. Pay attention to the movements in the crude oil market.
Today’s important economic indicators
Economic indicators and eventsJapan timeAustralian Policy Rate Announcement13:30Eurozone Consumer Price Index18:00US Retail Sales21:30
*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.
