USDJPY Trading in the Upper 151 JPY Range, Likely Driven by US Presidential Election-Inspired USD Buying【October 22, 2024】
Fundamental Analysis
USDJPY is rising into the upper 150 JPY range, with election-related trading driving USD buying.
Overall, the forex market is seeing a continued rise in USD demand, while stock indices are facing profit-taking pressures.
USDJPY is facing strong resistance at the 151 JPY level, with the 10-day moving average (MA) acting as a support line.
USDJPY technical analysis
Let’s analyze the daily USDJPY chart. The pair is pushing towards the 151 JPY level. Historically, the 10-day MA tends to serve as a support line in strong markets, and this time too, the pair has rebounded from the 10-day MA, reaching new highs.
When applying a Fibonacci retracement to the recent major downtrend, the 50% retracement level is found at 150.70 JPY. The 50% retracement line is considered an important level, where selling pressure tends to peak. Additionally, 151.070 JPY marks the R2 resistance on the monthly pivot, which is a very strong resistance level.
Looking at the MACD, the histogram is starting to fall below the signal line, indicating a possible weakening in the bullish trend. The focus will be whether USDJPY can break clearly above the 151.070 JPY level.
Day trading strategy (1 hour)
Next, we analyze the 1-hour USDJPY chart. On the 1-hour chart, USDJPY continues to rise with support from the 10-hour MA. It has risen to 150.88 JPY, and there seems to be some profit-taking as the market reaches this level. The 240-hour MA is also being noted, which is interesting.
With US stock indices also entering a corrective selling market, we may see USDJPY’s rise pause. It could be an opportunity for a counter-trade, selling around the 151 JPY level.
The day trading strategy is to initiate a new sell position at 151.07 JPY, set a stop-loss at 151.25 JPY, and aim for profit-taking around 150.35 JPY.
Support/Resistance lines
The following support and resistance levels should be considered going forward:
151.00 JPY: Round number / Monthly resistance line
150.30 JPY: Fibonacci 50% retracement
Market Sentiment
USDJPY Sell: 75% Buy: 25%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeBank of Japan Core CPI14:00Speech by Deutsche Bundesbank President Nagel22:15Speech by BOE Governor Bailey22:25Speech by FOMC Member Harker23:00Speech by ECB President Lagarde04:15 (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.
