Markets Analysis

USD/JPY Range Trading with Decreased Volatility, A Market Lacking Material【February 27, 2024】

February 27, 2024

Markets Analysis

Fundamental Analysis

  • The USD/JPY has formed a range around JPY 150.50.
  • Neither breaking above nor below, awaiting the next piece of news.
  • Attention should be paid to the U.S. PCE Price Index and comments from FRB officials in the future.

USDJPY Technical Analysis

Analyzing the daily chart of USD/JPY. The latter 150s are quite heavy, with minor price movements continuing for 4 days. There are significant stop-loss orders set in the JPY 151 level, and touching this level could lead to a sharp surge.

It has not yet surpassed the recent high of JPY 150.870, continuing to move in the mid-150s. The upcoming U.S. PCE Price Index and comments from FRB officials are likely to cause fluctuations. However, the downside remains solid, not falling below the Ichimoku conversion line. The RSI is at around 61, showing a flat line.

[USDJPY/ D1]

Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour USD/JPY chart. It temporarily rose to JPY 150.82 but quickly fell back, and breaking through the latter 150s has been challenging. There is an undeniable lack of material at the moment.

The Bank of Japan is preparing to lift negative interest rates, which might be considered. Meanwhile, the downside has not fallen below JPY 150.26, showing a rebound. The 240 moving average and the cloud are near, making it difficult to break below easily.

As a day trading policy, consider buying on dips while being mindful of the range and consolidation. Buy entry at JPY 150.25, take profit at JPY 150.65, and stop if it falls below JPY 149.85.

Support and Resistance Lines

Upcoming significant support and resistance lines:

JPY 150.250 – a major support line

[USDJPY/ H1]

Market Sentiment

USDJPY Sell: 72% Buy: 28%

Today’s important economic indicators

Economic indicators and eventsJapan time
Nationwide Consumer Price Index of Japan8:30
Core Durable Goods Orders22:30
U.S. Consumer Confidence IndexMidnight

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

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