USD/JPY Rises Firmly, Surpassing 145 JPY【January 16, 2024】

Fundamental Analysis

• Nikkei Average Continues 8-Day Winning Streak, Increase in Investment Funds with New NISA Operation
• USD/JPY Rises Above 145 JPY, Weakening JPY in Sync with Nikkei Average
• Immediate Resistance Near 145.50 JPY, Fibonacci Levels in Focus

USDJPY Technical Analysis

Analyzing the USD/JPY daily chart. Rebounded at the 38.2% Fibonacci retracement, attempting to reach near 146.00 JPY, the 50% price zone. This 50% zone is a strong resistance; breaking above could lead to a range between 146 JPY to 148 JPY. RSI at 51, indicating increasing upward pressure.
Reacting to the 240-day moving average, with ongoing battle around the 200-day moving average at approximately 145.25 JPY. Given the strength of the Nikkei and a strong dollar, a continued weakening JPY is expected.

Day Trading Strategy (1-Hour Chart)

Analyzing the USD/JPY 1-hour chart. The upward trend line has shown reactions twice recently, indicating a rebound. Currently maintaining an upward trend, aiming for 145.48 JPY. Breaking above 145.48 JPY could lead to resistance at 146 JPY, with potential for a sharp rise.
Even if it drops below the trend line, the 200 moving average might provide support, anticipating some rebound. Considering a contrarian strategy at overbought levels, entry at 146.18 JPY, target at 145.65 JPY, and stop at 146.50 JPY are envisaged.

Support and Resistance Lines

Upcoming significant support and resistance lines:

146.24 JPY: Major resistance line
145.48 JPY: Major resistance line

Market Sentiment

USDJPY Sell: 64%, Buy: 36%

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.