Markets Analysis

USDJPY is on an upward trend and continues to rise to new highs【August 28, 2023】

August 28, 2023

Markets Analysis

Fundamental Analysis

  • Fed Chair Jerome Powell Cautious About Additional Rate Hikes; U.S. Stock Indexes Rise
  • USD/JPY hits highs, moves into the upper ¥146 range
  • ECB President Lagarde stresses continuation of high interest rate policy

USDJPY Technical Analysis

Analyze the daily chart of the USD/JPY exchange rate. RFB Chairman Jerome Powell emphasized the “data-dependent” stance on additional rate hikes. There was no mention of the timing of a rate cut, indicating that the risk of events in the direction of a stronger yen has passed once and for all. On the technical front, the uptrend is likely to continue as the GMMA is forming a shape indicating trend strength.

Also, on the daily chart, 146.80 yen corresponds to 61.8% of the Fibonacci retracement. USD/JPY is likely to continue its uptrend, and a break above 146.80 yen is expected for further upside.

[USDJPY / D1]

Day Trading Strategy (Hourly)

Analysis of the hourly chart of the dollar-yen market shows that the 10, 24, and 72 moving averages are in perfect order positions, all pointing upward. This suggests a stable uptrend. Furthermore, the +DI of ADX is also upward, with ADX itself at 23.

The strategy is to “buy on the push”. Entry point is targeted at 146.20 yen (10 moving averages) and settlement at 147.45 yen (100% of Fibonacci Expansion). The stop loss is to be set at 145.70 yen (the point where the recent low was broken).

Support and Resistance Lines

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

146.56 JPY – Major resistance line
145.50 JPY – Pivot point

[USDJPY / H1]

Market Sentiment

USDJPY Sell: 75% Buy: 25%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
Australian Retail Sales10:30

*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 or page is operated by Milton Markets.

Milton Markets is a trading name of Milton Markets Ltd. Milton Markets Ltd. is registered in Saint Lucia with registration number 2023-00166.

Risk Warning: Trading FX and CFD products involves a high risk of loss to your capital. Please read and fully understand the Milton Markets risk disclosure.

Milton Markets does not provide services to residents of the following countries,including but not limited to: Afghanistan, American Samoa, Belarus, Burundi, Canada, Central African Republic, Congo-Brazzaville, Cuba, Côte d'Ivoire, Eritrea, European Union countries, Guinea, Iran, Iraq,

Lebanon, Liberia, Libya, Mali, Myanmar, North Korea, Puerto Rico, Russia, Rwanda, Saint Vincent and the Grenadines, Somalia, Sudan, Syria, U.S. Virgin Islands, United States, Venezuela, Yemen, Zimbabwe.

Customers must be at least 18 years old or the age of legal majority in their own country.

Furthermore, opening an account is considered as registering on your own initiative without any solicitation by Milton Markets.

© MILTONMARKETS, All Right Reserved.