Markets Analysis

USD/JPY Rises, Dollar Buying Triggered by Comments from Federal Reserve Board Member【January 17, 2024】

January 17, 2024

Markets Analysis

Fundamental Analysis

  • Fed Governor Waller Suggests Cautious Rate Cuts, Inducing a Stronger Dollar
  • USD/JPY Rises to the 147 JPY Range, Approaching the Fibonacci 61.8%
  • U.S. Economic Indicators at Lowest Since Pandemic, Gradual Deterioration in the U.S. Economy

USDJPY Technical Analysis

Analyzing the USD/JPY daily chart. Currently trading in the 147 JPY range, touching the 61.8% resistance line. Cautious remarks on rate cuts by a Fed Governor have induced dollar buying, leading to a notable trend of a weaker yen and stronger dollar. RSI is at 57, indicating a robust upward trend.
Breaking above 147.45 JPY could set the stage for the next major target in the 150 JPY range. Additionally, the retreat in expectations for a Bank of Japan rate hike is contributing to the stronger dollar.


Day Trading Strategy (1-Hour Chart)

Analyzing the USD/JPY 1-hour chart. A strong upward trend is forming, reaching the 61.8% Fibonacci retracement on the daily chart. Battle expected at this level. The 24-moving average was previously a focus but is now diverging.
Market sentiment shows 80% in selling positions, indicating a rise triggered by stop-loss catching, but selling pressure remains strong. RSI is at 75, increasing the likelihood of a drop on some trigger.
Both fundamentally and technically, the trading approach favors buying. Day trading strategy: buying on dips, entry point at 146.75 JPY, target at 147.40 JPY, and stop loss at 146.35 JPY.

Support and Resistance Lines

Upcoming significant support and resistance lines:

147.45 JPY: Fibonacci 61.8%


Market Sentiment

USDJPY Sell: 80%, Buy: 20%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
UK Consumer Price Index16:00
U.S. Core Retail Sales22:30

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

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