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

Market Sentiment

USDJPY Sell: 72% Buy: 28%

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.