USDJPY Slightly Rises as U.S. CPI Indicates Mild Inflation Deceleration【August 15, 2024】
Fundamental Analysis
U.S. CPI Nearly Matches Market Expectations, Indicates Mild Inflation Deceleration
Emergency Rate Cut Denied, Stock Indices Rise
USDJPY Drops to 146 JPY, Rebounds, Trades Around 147.25 JPY
USDJPY technical analysis
Analyzing the daily chart of USDJPY. After a sharp decline, USDJPY rose to the 147 JPY range, but the 148 JPY level remains a tough resistance. It was expected that the U.S. CPI would set a direction, but the movement remained limited. The results suggest a slowdown in U.S. inflation, implying rate cuts are likely, but gradual rate hikes are still anticipated.
USDJPY is forming a range between 146 JPY and 147.80 JPY. If the range is broken to the upside, there is potential for an increase to around 148.50 JPY, corresponding to the 38.2% Fibonacci retracement level.
Day trading strategy (1 hour)
Analyzing the 1-hour chart of USDJPY, it is evident that a range is forming. The 23.6% Fibonacci retracement level on the daily chart acts as support and is at the lower bound of the range. The upside near 148.60 JPY remains very heavy, preventing a breakout of the range.
Today, U.S. Initial Jobless Claims will be released, providing insights into the employment situation.
The day trading strategy is to enter a sell position at 147.80 JPY and a buy position at 146.50 JPY within the range strategy. Place a stop at approximately 20 pips in case of reversal.
Support/Resistance lines
The following support and resistance lines should be considered:
147.80 JPY – Upper bound of the range
Market Sentiment
USDJPY Sell: 49% Buy: 51%
Today’s important economic indicators
Economic indicators and eventsJapan timeJapan GDP8:50Australia Employment Statistics10:30UK GDP15:00U.S. Retail Sales21:30U.S. Initial Jobless Claims21:30
*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.
