Dollar-Yen moves slightly, fails to try 140 JPY【June 7, 2023】
June 07, 2023
- Major U.S. stock indexes rise, with financials and small caps leading the way
- Australian central bank announces policy rate hike of 0.25% to 4.10
- The Australian dollar rallied sharply, rising for the fifth day in a row
- Gold mostly unchanged; volatility will depend on FOMC results
USDJPY Technical Analysis
The dollar-yen is experiencing very low volatility. Yesterday, it temporarily rose to just before JPY 140, but fell back. In the 1-hour time frame, the wrapping foot, which is a characteristic of a change of direction, can be seen three times in the recent past. Going forward, the occurrence of a wrapping foot (outside bar) is likely to indicate a change of direction, so we should pay close attention to the shape of the candlestick at the high and low price areas.
Day Trade Strategy (Hourly)
As a day trading strategy, we believe it is a good idea to set up short-term contrarian positions near the uptrend line and in the resistance zone. The JPY 139 area is also a past low to watch.
A downward trend line and an upward trend line can be drawn, forming a triangle. The price is hovering around the 240 moving average and continues to be pulled back when it tries to move away. We can assume that the market is storing up energy in preparation for the FOMC meeting.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
JPY 139.07 – Major low price in the past
JPY 138.70 – The lower limit of the main range price in the past
USDJPY Sell: 68% Buy: 32%
Today’s Important Economic Indicators
|Economic Indicators and Events||JST (Japan Standard Time)|
|Canada Policy Rate Announcement||23:00|
|U.S. crude oil inventories||23:30|
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.