USDJPY Maintains Yen Weakness Trend but Traders Remain Cautious【December 17, 2024】
Fundamental Analysis
Nasdaq Hits New Highs While S&P 500 Declines Consecutively
USDJPY maintains a yen-weakening trend as traders remain cautious ahead of the Bank of Japan (BOJ) meeting results.
USDJPY Technical Analysis
Analyzing the daily USDJPY chart, the pair has broken above the Ichimoku cloud and climbed to the 154 JPY level. With the BOJ holding off on rate hikes, yen weakness has intensified. There is a strong resistance zone at 154.42 JPY, and while the pair retraced yesterday, focus remains on whether it can break above this level today.
There is potential for an upward move to around 156.75 JPY this month. The 72-day moving average is also trending upward, suggesting USDJPY could attempt to surpass the recent daily high of 156.75 JPY.
Day trading strategy (1 hour)
Analyzing the 1-hour USDJPY chart, the pair continues to hit new highs, but the MACD histogram remains in a declining state. A classic divergence has occurred.
The MACD divergence indicates a narrowing gap between the 12-period and 24-period moving averages.
The strategy remains to target pullbacks:
Buy limit at 153.21 JPY
Take profit at 154.42 JPY
Stop loss below 153 JPY.
Support/Resistance lines
Key support and resistance lines to consider:
155.50 JPY: Key psychological level
154.48 JPY: Yesterday’s high
Market Sentiment
USDJPY: Sell: 65% / Buy: 35%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeUK Employment Data16:00US Core Retail Sales22:30Canada CPI22:30
*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.
