USDJPY Hits New Highs Amid Quiet Holiday Markets【December 23, 2024】
Fundamental Analysis
USDJPY hit new highs as market participants adjust positions ahead of the Christmas holiday.
The outlook for a January rate hike has also faded, contributing to the pair’s recent movements.
USDJPY Technical Analysis
Analyzing the daily chart, USDJPY updated its high to 156.75 JPY. Although there was a slight pullback, the overall trend remains upward. Due to the Christmas holiday, market trading volumes are expected to hit their lowest levels of the year, increasing the possibility of price volatility.
The pair is trading above the conversion line, which is acting as support. If this trend continues, USDJPY could aim to break above 160 JPY early next year. The Bank of Japan is unlikely to raise rates until after the spring labor negotiations in March, signaling potential yen depreciation until then.
Day trading strategy (1 hour)
The USDJPY hourly chart suggests potential for unexpected movements during the Christmas holiday, making for a challenging market. Support and resistance levels are likely around 156.10 JPY and 156.70 JPY. It will be crucial to monitor whether the 72-period moving average acts as support.
Strategy: Focus on buying on dips. Consider entering long positions if prices drop to the upper 155 JPY range. Place a stop if the price breaks clearly below the 72-period moving average, and set your target at 157.50 JPY for profit-taking.
Support/Resistance lines
Key support and resistance lines to consider:
- 156.75 JPY: Key psychological level
Market Sentiment
USDJPY Sell: 67% Buy: 33%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeUK GDP16:00Canada GDP22:30US Consumer Confidence IndexMidnight
*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.
