Markets Analysis

Fundamental Analysis

• U.S. Stock Price Index Sharply Higher; Receding Interest Rate Hike Speculation a Factor in Stock Market Gains
• U.S. Producer Price Index at 3-year low
• Fed Rate Hike Likely to be Discussed in Second Half of Year

USDJPY Technical Analysis

USDJPY has continued to fall very hard, but has rebounded slightly and paused at the support zone in the upper JPY 137 level. The pair has entered the Ichimoku Kinko Chart cloud on the daily chart and is expected to take some time to break to lower lows.

The half price of the most recent daily uptrend is near JPY 137.35, and a scenario in which the price falls to the first half of JPY 137 is possible. However, the half price will be a rebound point that is easily recognized, so there is a possibility of push-back.

Day Trading Strategy (Hourly)

Our day trading policy is to watch the market and pull back enough to buy on the push. Since it is the weekend, we believe that new position orders are unlikely to be placed. Specifically, we would like to buy if the price falls to around JPY 137.35, which corresponds to the daily half price point.

If the price does not reach the above level, we plan to forgo the trade.

Support and Resistance Lines

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

137.95 JPY – Major support zone
137.35 JPY – Major support (previous high)

Market Sentiment

USDJPY　Sell: 29% Buy: 71%

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.