Nikkei Average Continues to Rise, USDJPY Attempts New Highs【December 30, 2024】
Fundamental Analysis
The final trading day of the year, the “Ōnōkai,” will conclude the Japanese market’s activities for 2024.
Traders are advised to exercise caution when carrying over positions through the year-end and New Year holidays.
USDJPY Technical Analysis
Analyzing the USDJPY daily chart reveals that the pair is trading above the 10-day moving average, maintaining a strong upward trend. Today marks the final trading day of the Japanese market. Last week’s reports indicated that the Bank of Japan is considering a rate hike soon, which has slightly slowed the pace of JPY depreciation.
The recent high at 158.08 JPY will be a critical resistance level to watch for a potential breakout.
As flash crashes have occurred during past year-end periods, careful position management is essential.
Day trading strategy (1 hour)
The forex market is expected to see light trading today, with more active participation likely after the New Year.
As 158 JPY is near a high-price range, it’s advisable to wait for a significant pullback to enter buy positions. However, it is recommended to stick to day trading and avoid holding positions over the year-end holidays.
Given the sentiment that the Bank of Japan’s rate hike may be delayed until spring, the ongoing trend of JPY depreciation and USD appreciation is expected to continue.
Support/Resistance lines
Key support and resistance lines to consider:
- 158.08 JPY: Recent High
Market Sentiment
USDJPY: Sell: 72% / Buy: 28%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeŌnōkai (Final Trading Day, Japan Market)3:30 PMJapan Manufacturing PMI9:30 AM
*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.
