Markets Analysis

Fundamental analysis

• Bank of Japan deputy governor presents accommodative interest rate rise scenario, perceived as more dovish than expected
• Some overseas investors expected continuous rise in interest rates, but the collapse accelerated the depreciation of the yen.
• Dollar-yen has entered the 149 yen level, will it aim for the 150 yen level?

USDJPY technical analysis

Analyze the daily chart of USD/JPY. The dollar-yen exchange rate remains at the 149 yen level and is rising rapidly. The Bank of Japan Deputy Governor’s speech was received as a dovish one, and there was widespread speculation that the interest rate differential between Japan and the United States would remain wide for some time to come.

The price broke above the recent high of 148.80 yen, indicating an uptrend based on the Dow Theory. As for the sense of direction, it’s probably from an upward perspective.

The latest daily resistance level is expected to be 150.28 yen. The RSI is 58, indicating a steady upward trend.

[Dollar Yen/Daily]

Day trading strategy (1 hour)

Analyze the hourly chart of the dollar yen. The price rose to 149.47 yen and then fell back due to profit-taking. However, it is supported by the conversion line of the Ichimoku Kinko Hyo.

If you draw the Fibonacci expansion, 61.8% corresponds to 149.47, and if it breaks above that, the low 150 yen level will be in your sights.

My day trading policy is to buy the push, enter at 149.15 yen, stop at 148.75, and settle at 149.95 yen.

support/resistance lines

The support and resistance lines that should be considered from now on are as follows.

150.62 yen…1 hour Fibonacci 100%

150.28 yen…Monthly resistance line

149.47 yen…1 hour Fibonacci 61.8%

[Dollar yen/1 hour chart]

Market sentiment

USDJPY Sell: 76% Buy: 24%

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.