USDJPY down, or linked to decline in cross-yen currencies.【September 8, 2023】

September 08, 2023

Markets Analysis

Fundamental Analysis

  • U.S. Jobless Claims Decline; U.S. Economic Indicators Mixed Weakness
  • EU GDP revised down, leading to Euro sell-off
  • In the currency markets, the yen is likely to be bid in addition to the dollar

USDJPY Technical Analysis

The daily chart of the USD/JPY exchange rate is analyzed. The dollar has been strengthening against the backdrop of strong U.S. economic indicators, but on the other hand, cross-yen currencies were seen selling and the yen was bought in tandem. Yesterday’s move showed a reactionary decline, but the fundamental fundamental is the interest rate differential between the U.S. and Japan, which is of interest to the market.

The current upward momentum has weakened somewhat, and we expect that whether the support line at ¥146.80 is maintained will be a key factor in determining future trends.


Day Trading Strategy (Hourly)

Analyze the hourly chart of the USD/JPY market. The market is currently forming a firmer market within the clouds of the Ichimoku Kinko Chart. The conversion line is below the base line and the lagging line is also below the candlestick. Furthermore, the RSI has been unable to rise above the 50 line, making it difficult for the market to shift to an upward trend.

In particular, a move below the lower limit of the Ichimoku Kinko Chart at 147.09 JPY could increase short-term selling pressure. Our trade policy is to consider short-term selling, with a stop set at the upper limit of the Ichimoku Chart Clouds and a settlement target of 146.80 JPY.

Support and Resistance Lines

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

146.80 JPY – Major support line


Market Sentiment

USDJPY Sell: 69% Buy: 31%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
Japan GDP8:50
German Consumer Price Index15:00
Canadian Employment Statistics21:30

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.

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