Markets Analysis

Fundamental Analysis

• Decreased trading volumes due to Christmas holidays, many countries observe the holiday with little movement
• USD/JPY hovers around 142.30 JPY, 140.95 JPY being the recent low
• Is the world heading towards lower interest rates? The yen is expected to strengthen in 2024

USDJPY Technical Analysis

Analysis of the daily chart for USD/JPY shows a return move to the 200-day moving average line after breaking through it. The 200-day moving average is acting as resistance, and a fall below the Ichimoku Conversion Line is visible. This indicates strengthening yen pressure.

The focus now is whether it will break below 140.95 JPY, with RSI at 37 showing a downward trend. January 2024 is expected to see a battle around the 140 JPY mark.

Day Trading Strategy (4-Hour Chart)

Analysis of the 4-hour USD/JPY chart shows a decline along the Ichimoku Conversion Line, forming a downward trend line. Furthermore, the lagging span moving below the candlesticks highlights a clearer downward direction.

The RSI is at 43, indicating unclear direction, but as long as it remains below 50, a bearish perspective in trading should be considered. However, day trading is challenging due to holidays in major countries. A recovery up to 143.50 JPY might allow for trades targeting a pullback.

Support and Resistance Lines

Upcoming resistance lines to consider:

140.95 JPY – Recent low

Market Sentiment

USDJPY Sell: 47%, Buy: 53%

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.