Fundamental Analysis

• President Biden has announced his withdrawal from the election, naming Vice President Harris as his successor.
• The market is expected to react with complex movements and may become sensitive to public opinion polls.
• Investors recall Trump trade strategies, questioning if the USD will strengthen.

USDJPY technical analysis

Analyzing the daily chart of USDJPY, the pair is supported by the 90-day moving average but remains in a precarious position. The breakout below the upward channel, which has been ongoing since the beginning of the year, holds significant meaning in technical analysis. If the upward channel confirms resistance, a stronger yen may be anticipated.

The cloud is providing support below, and the focus will be whether the pair breaks below the 90-day moving average and updates its low. The Bank of Japan’s meeting at the end of the month will also be closely watched.

Expectations are high for significant bond reductions and rate hikes from the Bank of Japan. If either falls short of expectations, traders should consider the potential for yen depreciation in their trading plans.

Day trading strategy (1 hour)

USDJPY is facing resistance. Selling pressure is strong above 157.80 JPY, with lower highs being recorded. While buying pressure is strong in the 155 JPY range, selling pressure increases in the 158 JPY range.

Day trading strategy is quite challenging today, as movements are expected to be unstable. If the pair slightly dips below 156 JPY, it might be worth a buy attempt. The strategy is to set a stop if it breaks below the recent low of 155.65 JPY.

Support/Resistance lines

The following support and resistance levels should be considered going forward:

155.65 JPY – Recent low

Market Sentiment

USDJPY Sell: 73% Buy: 27%

Featured Currency Pair of the Week (USDCHF)

The US Dollar-Swiss Franc pair may be forming a double bottom. The 0.8830 CHF level is functioning as a support line, and a rebound is observed. The focus now is on whether the pair can break below the 0.8830 CHF level. The 52-day moving average is below the 90-day moving average, indicating a decline. The MACD suggests a shallower trough at the same price level, indicating a potential divergence.

In the short term, attention should be paid to whether the conversion line of the Ichimoku Kinko Hyo acts as a resistance line.

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.