USDJPY Slightly Rises, Supported by Upward Revision of U.S. Economic Indicators【August 30, 2024】
Fundamental Analysis
U.S. GDP Revised Upward, Personal Consumption Remains Strong
Focus on Changes in U.S. Fed’s Rate Cut Outlook, U.S. Price-Related Indicators to Be Released Today
USDJPY technical analysis
Analyzing the daily chart of USDJPY. The USDJPY is facing resistance at the conversion line. The U.S. GDP was revised upward to 3.0%, and U.S. personal consumption was also revised up to 2.9% from the preliminary figures. Additionally, NVIDIA’s earnings exceeded market expectations. Although NVIDIA’s stock price is currently declining, it is expected that buying will come in on dips.
However, the USDJPY is facing heavy resistance. Despite strong U.S. economic indicators, leading to increased buying of the USD, the USDJPY failed to maintain levels above 145JPY. The inability to surpass the conversion line is noteworthy. The key to confirming an uptrend will be whether USDJPY can break above the conversion line. If USDJPY breaks below 143.45JPY, it is likely that yen buying will strengthen, potentially aiming for the 140JPY level.
The Stochastic indicator has exited oversold territory, indicating a potential temporary rise as USDJPY forms a rebound high.
Day trading strategy (1 hour)
Analyzing the 1-hour chart of USDJPY. The 200-period moving average is acting as support for USDJPY. Additionally, the baseline of the Ichimoku Cloud is also functioning as a support line. A rising trendline can be drawn, with the 144.75JPY level serving as a key price range.
Today’s day trading strategy is challenging, but considering the strong performance of the U.S. stock market yesterday and the 1-hour chart’s movement, I prefer short-term buying on dips. However, I will remain cautious during the NY session when U.S. economic indicators are released, and will determine the direction after seeing the results.
Support/Resistance lines
The following support and resistance levels should be considered moving forward:
145.50JPY – Recent High on the 1-Hour Chart
145.17JPY – Conversion Line on the Daily Chart
143.45JPY – Recent Low on the Daily Chart
Market Sentiment
USDJPY Sell: 33% Buy: 67%
Today’s important economic indicators
Economic indicators and eventsJapan timeJapan Industrial Production8:50EU Consumer Price Index18:00U.S. Core PCE Price Index21:30Canada GDP21:30U.S. Michigan Consumer Sentiment Index23:00
*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.
