Dollar-Yen Recovers to JPY 140 Level, Will It Break Out of the Triangle?【June 8, 2023】

Fundamental Analysis

• Nikkei Stock Average falls back on highs, forming a wraparound leg
• Nasdaq falls back, selling off in tech stocks
• Bank of Canada unexpectedly raises interest rates, reminding investors that the rate hike cycle is not over
• Gold falls, breaks out below key uptrend line at close

USDJPY Technical Analysis

➡ Last night’s movement and overview of the dollar and key technicals are described.

Day Trade Strategy (Hourly)

The day-trade policy is range trading. A series of unexpected gains in Australia and Canada on consecutive days made investors aware that the rate hike cycle is continuing. The dollar surged from JPY 139 to the JPY 140 level, pausing at the upper line of the triangle.

The focus now turns to how long the triangle will hold. After all, a full-fledged rally is unlikely until the FOMC meeting. If so, we can expect the price to pull back to the moving average again. If the price breaks above the triangle, a rise to JPY 140.49 is expected.

Triangle

The upper line of the triangle can be seen reacting twice and the lower line once; with the 61.8% Fibonacci line at the lower end, it will be interesting to see whether the triangle or Fibonacci will function more strongly.

Support and Resistance Lines

The resistance line to be considered in the future is as follows

JPY 140.49 – Major resistance level
JPY 139.97 – Fibonacci level

Market Sentiment

USDJPY Sell: 70% Buy: 30%

Today’s Important Economic Indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.