Markets Analysis

Dollar/Yen continues to fall, focus on today’s U.S. employment data【June 2, 2023】

June 02, 2023

Markets Analysis

Fundamental Analysis

  • U.S. ADP Employment Report Exceeds Market Estimates, 278,000; Wage Growth Declines
  • U.S. jobs report due out today, estimate 195,000
  • Fed Governor and Fed Chair Jerome Powell support halting interest rate hikes, halting dollar strength
  • USD/JPY remains on a downtrend, hovering around JPY 138.820

USDJPY Technical Analysis

The USD/JPY has shifted the stage from the JPY 139 level to the JPY 138 level due to increased volatility at the beginning of the month. On the 1-hour timeframe, the pair is still in a downtrend, having fallen below the 240 moving average. On the 4-hour time frame, the Fibonacci retracement and the price range formed in the past, and on the 1-hour time frame, the formation of a descending channel should be watched.

Swing Analysis (4-hourly)

Analyzing the 4-hour chart of the dollar-yen, the 138.30-138.70 range, which is the price range of the range formed in the past, may serve as a support band. Whether or not the downward momentum will strengthen in the future is still likely to be determined by the FOMC meeting to be held on June 13-14. Since this is a rather large support zone, there is a possibility that profit-taking and push-buying may take place.


Day Trade Strategy (Hourly)

Analyzing the 1-hour chart of the USD/JPY, the main focus on the 1-hour chart is the formation of the descending channel and the target price based on the Fibonacci Expansion.

Currently, the pair is hovering near the lower band of the descending channel, and we note the possibility of an adjustment rebound once it occurs. In particular, after the release of the employment data, weekend position adjustment moves are likely to occur, which may result in short-covering. Even in the event of a rally, we expect it to be short-lived due to the presence of moving averages. Although it depends on the employment data, we should keep in mind that the support band is thick.

Support and Resistance Lines

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

138.30 yen – Lower limit of the past range price
138.10 yen – Fibonacci retracement (38.2%)
137.87 yen – Fibonacci Expansion (161.8%)


Market Sentiment

USDJPY Sell: 67% Buy: 33%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
U.S. Employment Statistics21:30
U.S. ISM Manufacturing Purchasing Managers’ Index23:00

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

Enter your email address

You can receive deals such as Milton Markets campaigns and bonuses just by registering your email address.

Technology vendor

This site is operated by Milton Markets.

Milton Markets is a trading name for Milton Markets LLC.

Milton Markets LLC is registered and regulated by Financial Services Authority in St. Vincent and the Grenadine Islands.

MFSC Managements Limited is a Payment agent of Milton Financial Services.MFSC Managements Limited is located at 30 Tempon Street, Engomi, Nicosia, 2408, Cyprus.

The abovementioned corporations or organizations are officially allowed to use Milton brands and trademarks.

Risk warning: FX and CFD product transactions have a very high risk of losing investment principal. Please read the risk disclosure of Milton Markets and fully understand.

Access to Milton Markets may be restricted to individuals or residents in the following countries (not limited to):

North Korea, Afghanistan, American Samoa, Belarus Burundi, Central African Republic, Congo - Brazzaville, Cuba, Iran, Iraq, Lebanon, Liberia, Libya, Myanmar (Burma), Puerto Rico, Rwanda, Somalia, Sudan, Syria, U.S. Virgin Islands , United States, Venezuela, Yemen, Zimbabwe, Côte D'Ivoire, Mali, Guinea, Eritreaa

Milton Markets does not provide services to citizens in the United States, Canada, EU, Iran, North Korea, St. Vincent and the Grenadine Islands.

© MILTONMARKETS, All Right Reserved.