Markets Analysis

USD/JPY Briefly Strengthens, Japan Consumer Price Index Surpasses Expectations【February 28, 2024】

February 28, 2024

Markets Analysis

Fundamental Analysis

  • Japan’s CPI Exceeds Market Forecasts, Core CPI at 2.0%
  • USD/JPY and cross-yen pairs briefly strengthen, with USD/JPY around 150.00 JPY
  • A senior official from the US Federal Reserve comments that it is too early for rate cuts, USD/JPY recovers to 150.50 JPY

USDJPY Technical Analysis

Analyzing the daily chart of USD/JPY. A review of the daily chart shows USD/JPY trading within a very narrow range. The price is solidly supported below 150 JPY and faces resistance above 150.80 JPY. It is considered a foregone conclusion that the Bank of Japan will move away from negative interest rates, making aggressive selling of the yen challenging. However, with the US economy also strong and the potential delay in interest rate cuts, selling the dollar is not an easy move either.

Positions are accumulating in both directions, searching for a sense of direction. Any material news could potentially trigger a trend.

[USDJPY/ D1]

Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour chart of USD/JPY. The pair continues to trade within a narrow range, forming a range market between 150.25 JPY and 150.60 JPY. The RSI is at 51, with the 200-day moving average providing support below. There is no clear direction, so range trading could be considered, buying low and selling high for profit.

The lows are gradually increasing, and even in yesterday’s sell-off, it did not break below 150 JPY. It seems that there is still a strong upward trend. There is a possibility that it could aim for a stop-loss hunt above 151 JPY. It’s not a market where one would want to sell the dollar easily.

The day trading strategy would be to look for buying opportunities near the lower end of the range. Buy around 150.25 JPY, settle around 150.70 JPY. Set a stop at 149.95 JPY.

Support and Resistance Lines

Upcoming significant support and resistance lines:

150.59 JPY – Strong resistance line
150.25 JPY – Monthly support line

[USDJPY/ H1]

Market Sentiment

USDJPY Sell: 72% Buy: 28%

Today’s important economic indicators

Economic indicators and eventsJapan time
US GDP22:30
US Crude Oil Inventories0:30 (next day)
FOMC Member Comments2:45 (next day)

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

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