Markets Analysis

USD/JPY Seeks Direction, U.S. Employment Figures Exceed Market Expectations【January 8, 2024】

January 08, 2024

Markets Analysis

Fundamental Analysis

  • U.S. employment statistics exceed market expectations, causing volatility in the Dollar Index
  • USD/JPY approaches 146 JPY temporarily before falling back, currently around 144.50 JPY
  • Employment numbers increase, but U.S. manufacturing economic index weakens

USDJPY Technical Analysis

Analyzing the daily chart of USD/JPY. Using the Fibonacci retracement, it’s observed that the price reacts at the 50% level. 146 JPY corresponds to this 50% level, serving as an important threshold. Whether this level is breached or not will determine future trends.

Support lines also exist around the 38.2% retracement, suggesting a strong lower limit for the market. The RSI is at 48, indicating a balance between bullish and bearish pressures. Currently, the trend towards a stronger dollar is somewhat pausing.


Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour chart of USD/JPY. A reaction is seen at the 38.2% Fibonacci retracement, indicating a strong lower limit below 144.30 JPY. The RSI is hovering around 53, suggesting the next direction will depend on whether it falls below 50 or rebounds.

After reaching a high near 146 JPY, a large bearish candle appeared, indicating significant selling. If U.S. interest rate cut speculations rise, USD/JPY may tend to move downward.

Considering a short-term short position. After confirming a break below 144.65 JPY, initiate a new sell; the settlement target is 143.75 JPY, with a stop loss at 145 JPY.

Support and Resistance Lines

Upcoming resistance lines to consider:

146.65 JPY – 23.6% price in Fibonacci retracement
144.40 JPY – Important price level on a monthly basis


Market Sentiment

USDJPY Sell: 57%, Buy: 43%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
EU Unemployment Rate19:00

*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 is operated by Milton Markets.

Milton Markets is a trading name for Milton Markets LLC.

Milton Markets LLC is registered and regulated by Financial Services Authority in St. Vincent and the Grenadine Islands.

Risk warning: FX and CFD product transactions have a very high risk of losing investment principal. Please read the risk disclosure of Milton Markets and fully understand.

Access to Milton Markets may be restricted to individuals or residents in the following countries (not limited to):

North Korea, Afghanistan, American Samoa, Belarus Burundi, Central African Republic, Congo - Brazzaville, Cuba, Iran, Iraq, Lebanon, Liberia, Libya, Myanmar (Burma), Puerto Rico, Rwanda, Somalia, Sudan, Syria, U.S. Virgin Islands , United States, Venezuela, Yemen, Zimbabwe, Côte D'Ivoire, Mali, Guinea, Eritreaa

Milton Markets does not provide services to citizens in the United States, Canada, EU, Iran, North Korea, St. Vincent and the Grenadine Islands.

© MILTONMARKETS, All Right Reserved.