Fundamental Analysis

• BOJ Governor justifies current monetary policy, leading to a weaker yen as USD/JPY reaches the 151 JPY level
• USD/JPY is forming an upward channel, aiming for new highs
• Attention is on Fed Chair Powell’s speech before dawn tomorrow, with focus on interest rate projections

USDJPY Technical Analysis

Analysis of the USD/JPY daily chart shows a rebound at the 24-day moving average, with a third consecutive day of gains. The BOJ Governor remarked on the positive cycle of prices and wages, but currently, views the implemented monetary easing policy as appropriate, strengthening the trend of a weaker yen and a stronger dollar. USD/JPY briefly rose to the 151 JPY level, with a close around 150.80 JPY.

The next focus is the recent high of 151.70 JPY. If surpassed, the 152 JPY level could come into view. The 100% Fibonacci expansion level of 152.770 JPY will be the target price moving forward.

Day Trading Strategy (Hourly)

An analysis of the USD/JPY 1-hour chart shows that after a drop to the 148 JPY level the other day, an upward trend has begun, supported by the 24-hour moving average, although the momentum seems to be weakening slightly. A break below the Ichimoku Conversion Line may indicate a potential precursor to a trend adjustment.

The RSI has fallen to 58, indicating a weakening of upward momentum. This may be somewhat related to a significant drop in oil prices.

The day trading strategy is to buy on dips. Consider entering at 150.70 JPY, taking profit at 151.20 JPY, and stopping at 150.50 JPY.

Support and Resistance Lines

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

150.40 JPY – Ichimoku Conversion Line

Market Sentiment

USDJPY　Sell: 79% Buy: 21%

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.