USDJPY Continues to Rise as BOJ Rate Hike Expectations Significantly Decline【December 16, 2024】
Fundamental Analysis
The Bank of Japan is expected to refrain from a rate hike as it evaluates the policies of President Trump.
Reports suggest that the US Federal Reserve is considering pausing rate cuts next year.
USDJPY Technical Analysis
USDJPY has risen for five consecutive days, driven by a strong trend of JPY depreciation against USD appreciation. This is due to expectations of the BOJ holding off on a rate hike and reports about the Fed potentially pausing rate cuts.
From a technical perspective, USDJPY has broken above the Ichimoku Cloud and moved beyond the pullback stage, entering a price range where the trend could accelerate. The pair is likely to target the monthly resistance level around 154.42 JPY.
Day trading strategy (1 hour)
USDJPY broke above the range near 152.60 JPY, rising sharply to 153.78 JPY. With the FOMC and BOJ meetings scheduled for Thursday, movements may be limited, but the JPY depreciation and USD appreciation trend is expected to continue unless there are surprises.
For day trading, a buy-on-dip strategy is recommended:
Buy Limit: Around 152.95 JPY, near the baseline
Take Profit: Around 154.35 JPY
Stop Loss: At 152.50 JPY
Support/Resistance lines
Key support and resistance lines to consider:
154.42 JPY: Monthly resistance level
151.95 JPY: Monthly pivot point
Market Sentiment
USDJPY Sell: 56% / Buy: 44%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeNikkei Services PMI8:50EU Composite PMI18:00US Manufacturing PMI23:45
*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.
