Fundamental Analysis

• USDJPY fluctuates around 150.50, attention on whether it can break the high of 150.85
• Nikkei hits record high, reaching 39,000 level
• US and European stocks also hit highs, funds flowing into stock market amid AI boom

USDJPY Technical Analysis

USDJPY rises towards mid-150s. World stocks, including Nikkei, hit record highs. Nvidia, leading the AI industry, posted earnings significantly exceeding expectations, leading to a substantial influx of funds into the stock market. Additionally, BOJ Governor indicated Japan’s price situation being in an inflationary state.

However, USDJPY remains marginally up overall. The conversion line of Ichimoku Cloud serves as a support line, making downside below 150 JPY fairly solid, yet the barrier towards the 151 JPY level remains thick.

Given the approaching weekend, profit-taking sales wouldn’t be surprising. Aim for buying on dips and be cautious of chasing highs.

Day Trading Strategy (1-Hour Chart)

Analyze the 1-hour chart of USDJPY. After hitting highs near 150.60 JPY, USDJPY failed to sustain the upward momentum, falling back to around 150.40 JPY. The baseline of Ichimoku Cloud acts as support on the downside.

Focus on the RSI value, which hovers around 53, watching for potential reversal. Notable economic indicators from the US are not scheduled today, hence there’s a possibility of a moderate decline due to profit-taking sales.

This market favors deep dips. 150.15 JPY aligns with the conversion line of the daily Ichimoku Cloud. It’s difficult to breach the conversion line in a trending market, and if breached, it might indicate a corrective phase. Consider entering long positions near 150.15 JPY today, with a stop at 149.85 JPY, and aim for settlement around 150.40 JPY.

Support and Resistance Lines

Future support and resistance lines to consider:

150.40 JPY: Near the upper limit of the range
150.15 JPY: Conversion line of daily Ichimoku Cloud

Market Sentiment

USDJPY Sell: 67% Buy: 33%

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.