Fundamental Analysis

• USDJPY plunged from 159 JPY to 157 JPY, possible forex intervention on Friday.
• Trump shot and injured, top news worldwide.
• Forex market reacts with USD strength, impact extent unknown.

USDJPY technical analysis

Analyzing the daily chart of USDJPY. USDJPY has declined for two consecutive days. Currently, it is at a critical juncture technically. It is approaching the 52-day moving average and is positioned at the lower boundary of the rising channel.

The RSI is below 50, the lowest level in a month. If it can rebound here, it may aim to reach new highs as before. If it breaks the rising channel, a shift to a JPY bullish trend could be considered. However, fundamental factors have not changed, so we might need to wait for the Bank of Japan meeting at the end of the month.

Trump’s shooting incident became top news worldwide. The forex market is experiencing USD strength. It is uncertain if this will continue to affect the forex market. We will continue to monitor the situation.

Day trading strategy (1 hour)

Looking at the hourly chart of USDJPY, it reached a low of 157.39 JPY and opened with an upward gap this morning. It appears oversold, suggesting a possible rebound.

Entering further short positions here is somewhat risky. Expecting a rebound at the daily rising channel and the 52-day moving average, the strategy will be to buy on dips.

Enter at 157 JPY in the 80s. Exit at 158.80 JPY. Set a stop below 157.39 JPY.

Support/Resistance lines

Support and resistance lines to consider going forward are as follows:

158.80 JPY – Monthly Pivot Point

157.39 JPY – Recent Low

Market Sentiment

USDJPY Sell: 60% Buy: 40%

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