Markets Analysis

USDJPY falls, markets focus on Fed Chair Powell’s congressional testimony【June 21, 2023】

June 21, 2023

Markets Analysis

Fundamental Analysis

  • Major U.S. stock indexes fell, perhaps pausing at overbought levels
  • Finance Minister Suzuki commented, “We will closely monitor currency movements and take appropriate measures.
  • METI Minister Nishimura commented, “We will watch for excessive volatility and speculative movements.
  • Commodity prices were under downward pressure globally, with Gold breaking below its range.
  • USD/JPY failed to break above the resistance zone at JPY 142, forming a daily wrap-around
  • Powell’s congressional testimony to be closely watched, with significant impact on USD/JPY

USDJPY Technical Analysis

The dollar hit a high of JPY 142.25 but fell back to around JPY 141.20. The market is paying close attention to Fed Chair Jerome Powell’s semi-annual congressional testimony today. Since he is expected to make remarks on interest rates, the dollar/yen is nervous. Therefore, a wait-and-see attitude may prevail during the day.

Looking at the equilibrium chart, the conversion line has become a resistance line and is driving prices lower. The price is likely to be unstable as it has entered the clouds, but the direction of the price is expected to be in the direction of a short-term decline. However, from a medium- to long-term perspective, there seems to be a strong appetite for buying.

Day Trading Strategy (Hourly)

The day trade policy is to buy at the push. If the price is near 141.05 yen, buy and stop when the price breaks below 140.80. The target price is around JPY 141.70, which is the reference line on the Ichimoku Chart.

Support and Resistance Lines

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

141.63 JPY – Pivot point
140.88 JPY – Major support zone


Market Sentiment

USDJPY Sell: 71% Buy: 29%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
BOJ Policy Meeting Agenda8:50
UK Consumer Price Index15:00
Fed Chairman Powell speaks23:00

*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.