Markets Analysis

Dollar/Yen rises; U.S. jobs report shows large increase in new hires【June 5, 2023】

June 05, 2023

Markets Analysis

Fundamental Analysis

  • U.S. Employment Report Sharply Increases New Jobs, While Unemployment Rate Also Increases
  • Stock indexes rallied on the positive U.S. jobs report, with the Dow Jones Industrial Average rising nearly 2%.
  • Nikkei Stock Average also strong, affecting the dollar and temporarily exceeding JPY 140
  • Gold slumps on dollar strength, funds flow out of gold and into risk assets

USDJPY Technical Analysis

Day Trade Strategy (Hourly)

Our trading policy for the dollar/yen is buy. Buying factors for the dollar outweigh selling factors for the yen, such as strong U.S. employment data, default avoidance, and sharp rises in the Nikkei and U.S. stock indexes. Although there is a movement toward adjustment, the market should wait for a push and stock up on purchases.

Market sentiment is also 72% against the greenback, so a rally involving stop-losses is possible.

Moving Averages

A comparison of the hourly 24 moving average (daily moving average) and the 240 moving average (2-week moving average) shows that the pair is just before a golden cross at the time of writing. The best entry timing would be after confirming the golden cross. However, considering the shape of the chart, the price has broken above the descending channel and is continuing to rise steadily. We can also confirm that the price is rebounding at a past conscious support zone, and the upward momentum seems to be strong.

Support and resistance zones

Considering the Fibonacci level, the pair has broken above 23.6% and is trying to get back to recent highs; upside could be heavier than JPY 141. Also, note that JPY 140.480 is also a major resistance zone.

Support and Resistance Lines

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

JPY 140.550 – Major support zone
JPY 139.870 – Weekly pivot point

[USDJPY / H1]

Market Sentiment

USDJPY Sell: 72% Buy: 28%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
U.S. ISM Manufacturing 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 or page is operated by Milton Markets.

Milton Markets is a trading name of Milton Markets Ltd. Milton Markets Ltd. is registered in Saint Lucia with registration number 2023-00166.

Risk Warning: Trading FX and CFD products involves a high risk of loss to your capital. Please read and fully understand the Milton Markets risk disclosure.

Milton Markets does not provide services to residents of the following countries,including but not limited to: Afghanistan, American Samoa, Belarus, Burundi, Canada, Central African Republic, Congo-Brazzaville, Cuba, Côte d'Ivoire, Eritrea, European Union countries, Guinea, Iran, Iraq,

Lebanon, Liberia, Libya, Mali, Myanmar, North Korea, Puerto Rico, Russia, Rwanda, Saint Vincent and the Grenadines, Somalia, Sudan, Syria, U.S. Virgin Islands, United States, Venezuela, Yemen, Zimbabwe.

Customers must be at least 18 years old or the age of legal majority in their own country.

Furthermore, opening an account is considered as registering on your own initiative without any solicitation by Milton Markets.

© MILTONMARKETS, All Right Reserved.