USDJPY Reacts to a Decline as Israel Reaches a Ceasefire Agreement with Lebanon【November 27, 2024】
Fundamental Analysis
President Biden announced that Israel has reached a ceasefire agreement with Lebanon.
Former President Trump revealed plans to impose additional tariffs on China, Canada, and Mexico.
Major currency pairs experienced temporary and intense sell-offs.
USDJPY Technical Analysis
An analysis of the daily chart for USDJPY reveals a potential shift from an uptrend to a downtrend. Key observations include:
USDJPY has broken below the baseline of the Ichimoku Kinko Hyo and updated recent lows.
The pair has also fallen below the 61.8% Fibonacci retracement level, signaling a possible transition to a bearish trend.
The RSI is currently at 52; however, if it drops below 50, it would indicate bearish momentum from an RSI perspective.
Despite USD strength due to the Israel-Lebanon ceasefire, JPY remains the most bought currency, causing USDJPY to react with a decline. Currently trading at 152.80 JPY, a further drop to the lower 151 JPY range is anticipated.
Day trading strategy (1 hour)
An analysis of the 1-hour chart for USDJPY indicates a downward trend:
Lower highs have been observed, and the pair has broken recent lows.
The conversion line is acting as a resistance level, reinforcing the downtrend.
Strategy:
Aggressive selling is recommended, with a target around 151.30 JPY.
Today’s market conditions may favor active trading. However, if the pair breaks above 153.25 JPY, a stop and reassessment of the strategy is advised.
Support/Resistance lines
Key support and resistance lines to consider:
- 153.30 JPY – Fibonacci 61.8%
Market Sentiment
USDJPY Sell: 65% / Buy: 35%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeAustralian Policy Rate Announcement10:00US GDP22:30US Jobless Claims22:30US Core PCE Price IndexMidnight (00:00)US Crude Oil Inventory00:30
*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.
