Markets Analysis

Fundamental Analysis

• BoJ Decides to Continue Large-Scale Monetary Easing
• Governor Ueda Comments on Being Close to Achieving Inflation Target
• Market Expects Negative Interest Rate Relief Around April, Rate Hike by End of 2024

USDJPY Technical Analysis

Analysis of the daily chart of USD/JPY. Although the BoJ has decided to continue large-scale monetary easing, Governor Ueda commented in a press conference that “the achievement of the inflation target is becoming more probable”, which has rapidly increased speculation about the nearness of negative interest rate relief. As a result, the yen strengthened during Tokyo hours, dropping to the lower 147 JPY range. However, during New York hours, despite yen selling, the price did not exceed the recent high of 148.80 JPY, closing at that level.

Day Trading Strategy (1-Hour Chart)

Analysis of the 1-hour chart of the USD/JPY market. The 149.17 JPY, corresponding to 100% of the Fibonacci Expansion, is the immediate resistance zone. Due to BoJ’s suggestion of a potential policy change, the trend of unilateral yen weakening is fading, making it difficult to discern a clear direction. It is expected that selling will occur in the 149 JPY range.

As a day trading strategy, consider selling at high prices. Sell limit at 149.17 JPY, take profit at 148.50 JPY, stop at 149.50 JPY.

Support and Resistance Lines

Upcoming significant support and resistance lines:

149.17 JPY: 100% of Fibonacci Expansion
148.80 JPY: Recent High

Market Sentiment

USDJPY Sell: 78%, Buy: 22%

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.