USDJPY Declines Temporarily but Supported by Dip-Buying, Eyes on Breaking Above 155JPY【November 20, 2024】
Fundamental Analysis
Reports suggest that Russia has eased its nuclear usage standards, triggering risk aversion and strengthening JPY temporarily.
European stocks remain weak as tensions between Ukraine and Russia escalate sharply.
USDJPY Technical Analysis
Analyzing the USDJPY daily chart reveals that the conversion line has acted as a support level, with strong dip-buying observed around the 153JPY level. The candlestick pattern resembles a dragonfly doji, indicating robust dip-buying sentiment.
Following reports that Ukraine used long-range missiles provided by the US to strike Russia, the latter revised its nuclear usage standards. This spurred risk-averse movements, causing USDJPY to dip to 153.30JPY temporarily before rebounding and turning upward.
The Ichimoku Kinko Hyo conversion line and the 61.8% Fibonacci retracement level appear to have functioned as strong support zones.
Day trading strategy (1 hour)
Analyzing the USDJPY 1-hour chart, dip-buying strength is evident, confirming solid support for lower levels. RSI is at 51, indicating a shift to a bullish trend for the first time in five days. However, resistance is observed in the cloud, suggesting it may take some time for USDJPY to break above 155JPY.
Entry: Around 154.25JPY
Exit: Around 156JPY
Stop-Loss: Below the recent low of 153.25JPY
Support/Resistance lines
Key support and resistance lines to consider:
155JPY: Psychological Round Number
153.28JPY: Recent Low
Market Sentiment
USDJPY Sell: 64% / Buy: 36%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeUK Consumer Price Index16:00ECB President Lagarde Speech22:00US Crude Oil InventoriesMidnight (00:00)FOMC Member Speeches2:15 (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.
