Fundamental Analysis

• The U.S. employment statistics exceeded market expectations with an increase of 303,000 people.
• USDJPY rose to 151.75JPY but failed to reach the 152JPY level, showing resistance on the upside.
• Two weeks have passed since the start of the range-bound market, increasing the likelihood of a breakout.

USDJPY technical analysis

Analyzing the 4-hour chart of USDJPY. The 90 moving average line on the 4-hour chart is being watched, showing a rebound once. Currently, it is moving around 151.70JPY, and the area below 151.50JPY is gradually becoming stronger.

There is a possibility of foreign exchange intervention at 152JPY, preventing aggressive moves into the 152JPY level. As the narrow range market is about to pass two weeks, a breakout occurring naturally seems likely. If it cannot break higher, it might try to move lower first, then potentially surge in a short-covering rally to test 152JPY.

Day trading strategy (1 hour)

Analyzing the 1-hour USDJPY market. USDJPY continues in a range-bound market with no particular characteristics. At the time of writing, it is moving around 151.70JPY, showing a tendency towards buying USD.

With the expectation of foreign exchange intervention around the 152JPY level, one would want to approach with a selling stance before 152JPY. If there is no intervention at 152.25JPY, then it would be prudent to stop and observe. Conversely, near 150.90JPY, entering a buy position and maintaining an overall range strategy is advisable.

Support/Resistance lines

The following are the support and resistance lines to consider:

151.75JPY – The recent high

Market Sentiment

USDJPY Sell: 74% Buy: 26%

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.