Fundamental Analysis

• Rise in Middle Eastern risks as Israeli military attacks key Iranian airports.
• US Core Consumer Price Index shows an increase, prompting questions on whether the Federal Reserve will implement further rate hikes.
• USD/JPY breaks out of its range, aiming for 150 JPY.

USDJPY Technical Analysis

Analyzing the daily chart of USD/JPY. The pair is currently aiming for the upper limit of its ascending channel and shows attempts to break the significant psychological level of 150 JPY. The next focus is on surpassing its 2022 high of 151.95 JPY. In the US, high-interest rate policies continue amidst unabating inflation.

Concerns arise over the side effects of additional rate hikes, with a visible stance on maintaining the current high-interest rates. Should inflation rates rise, there might be potential for further rate hikes. For the USD/JPY, there aren’t any strong factors for yen appreciation. While an upward trend is anticipated, market caution should not be overlooked.

Day Trading Strategy (Hourly)

Analyzing the 1-hour chart of the USD/JPY. The pair has breached 149.50 JPY and is making its third approach to 150 JPY. The RSI stands around 66, signaling attention to moves exceeding 150 JPY. With heightened expectations of additional rate hikes and bullish fundamentals, there are also voices expressing concern over the side effects of high interest rates. The current price range seems high for entry, prompting a wait-and-watch approach for a dip.

As a day trading tactic, dip-buying is recommended. An appropriate entry might be at 149.40 JPY, taking profit at 151.10 JPY, and setting a stop-loss at 141.00 JPY. Going forward, statements from authorities will be crucial.

Support and Resistance Lines

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

150.15 JPY: Recent high
148.925 JPY – A noticeable low

Market Sentiment

USDJPY　Sell: 74% Buy: 26%

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.