Trump Signs Executive Order on Tariffs – Watch for Stock and Forex Market Volatility【February 3, 2025】
Fundamental Analysis
The Trump administration has announced the implementation of tariffs on Canada, Mexico, and China.
Each country is preparing countermeasures, signaling the start of a trade war.
This development has significant implications for stock indices and forex markets, making future predictions difficult at this stage.
USDJPY Technical Analysis
An analysis of the USDJPY daily chart shows that the pair has rebounded at the 90-day moving average. Despite the U.S. government implementing new tariffs, the market has reacted with a stronger USD. However, USDJPY is currently trading below the 26-day moving average and has also fallen below the ascending channel.
The 153 JPY level has shown strong buying support, leading to speculation on whether the pair will re-enter the ascending channel. While the stochastic indicator suggests a downward trend, it is not conclusive. For now, as long as USDJPY remains above the 90-day moving average, buying on dips appears to be the preferred strategy.
Day trading strategy (1 hour)
On the 1-hour USDJPY chart, the price has broken above the 26-day and 90-day moving averages and is approaching the 200-day moving average. However, with the stochastic indicator reaching a high level, it may be advisable to wait before entering a buy position. Resistance is expected to be strong above 155.50 JPY.
The market reaction to the tariffs remains uncertain, but a negative sentiment appears to be prevailing. The Nikkei 225 Index has opened with a significant gap down, reflecting concerns among investors. However, given the ongoing USD appreciation, the preferred strategy is to look for buying opportunities in USDJPY.
Trade Setup:
Entry: Buy near 155.00 JPY
Take Profit: 155.90 JPY
Stop Loss: 154.65 JPY
Support/Resistance lines
Key support and resistance lines to consider:
- 153.20 JPY – 90-day moving average
Market Sentiment
USDJPY: Sell: 58% / Buy: 42%
Today’s important economic indicators
Economic Indicators and EventsJapan TimeAustralia Retail Sales09:30Germany Manufacturing PMI18:00OPEC Meeting19:00EU Consumer Price Index (CPI)19:00US Manufacturing PMI23:45US ISM Manufacturing PMI00:00 (midnight)FOMC Bostic Speech02:30 (next day)
*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.
