Markets Analysis

Fundamental Analysis

• U.S. Stock Indices Continue to Rise, Weakening U.S. Economic Indicators Weakens Rate Hike Observations
• BOJ Governor Rejects Excessive YCC Revision, Says Policy Unchanged Unless Overall Price Outlook Remains Unchanged
• ECB officials said that the probability of a rate hike next week is high, but that the future will depend on data.

USDJPY Technical Analysis

The USDJPY turned from a downtrend to an uptrend following the BOJ Governor’s comments on the YCC revision. The resistance was at JPY 139.10, but the BOJ governor’s comments strengthened the JPY against the dollar, and at one point the JPY was close to JPY 140 . Although the pair fell back due to profit taking near JPY 140, the JPY had been strengthening in anticipation of the YCC correction, and the governor’s comments removed the ladder from the market.

The 24-hour moving average is functioning as a support line, and the target price is likely to be around JPY 141.40.

Day Trading Strategy (Hourly)

The day-trade policy is to buy at the push.
With the weakening of the YCC correction view, the JPY is likely to weaken more. We would like to buy once around JPY 139.40, which corresponds to today’s pivot point. Stop is near JPY 139.15. The target is expected to be JPY 141.40. The upside is firm above JPY 141.40. Once at JPY 141.40, a sell order may be placed to reverse the trend, as the price is likely to fall back.

Support and Resistance Lines

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

141.40 JPY – Major resistance zone
139.40 JPY – Pivot point
139.15 JPY – Upper limit of the range

Market Sentiment

USDJPY　Sell: 40% Buy: 60%

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.