Fundamental Analysis

• U.S. Jobs Report Falls Short of Market Estimates; Currency Markets React with Strong Dollar Selling
• U.S. Average Hourly Earnings Rise, Inflation Fears Persist, Additional Rate Hike Possible
• Cross Yen falls sharply, JPY buying strengthened by position adjustments ahead of summer vacation
• EURUSD reacts at the equilibrium cloud, rebounds and rises sharply
• GBPUSD continues its uptrend, with a milestone price at USD 1.2850

USDJPY Technical Analysis

The dollar dropped sharply after the release of the ADP employment report and the U.S. jobs report, falling from 144 to 143 JPY and from 143 to 142 JPY, respectively. 142.60 JPY is now below the 142.60 JPY level, so the downward trend is likely to continue for a while.

Analysis of the daily chart shows that the pair is approaching the base line (141.91) on the Ichimoku Kinko Chart, and 141.91 JPY would be the support band. July is also known as the month of summer slump before the summer holidays, and there is an anomaly that the JPY tends to strengthen.

Day Trade Strategy (Hourly)

Today’s day trade policy is to return to the market and sell at the limit when the price reaches around 142.60 or 142.80 JPY. There is a large resistance zone around 142.60-142.80 JPY, and we expect the price to fall back. Buybacks are expected near the daily base line at 141.90 JPY, with a stop loss at a clear break above 143.00 JPY.

Although there is a possibility that the daily reference line could be plunged to the downside guideline, there is a strong appetite for push-backs, so keep currency strength and weakness in mind and be aware of short-term trading.

Support and Resistance Lines

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

142.78 JPY – Pivot point
141.20 JPY – Major support zone

Market Sentiment

USDJPY　Sell: 45% Buy: 55%

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.