Fundamental Analysis

• US stock indices plummeted, with Nasdaq dropping over 3%.
• The BOJ governor reiterated the intention to raise interest rates, leading to a rise in bank stocks.
• The Nikkei average remains weak overall as a strong JPY and rate hikes drive selling of export stocks.

USDJPY technical analysis

Analyzing the daily USDJPY chart, the pair is in a correction phase within a downward trend. Several bearish signals are present, such as a flat support line, lower highs, and the appearance of a large bearish candlestick near the highs.

On the daily chart, attention should be paid to whether USDJPY breaks below the 143.50 JPY support line again. Yesterday, the BOJ governor’s remarks on interest rate hikes strengthened JPY. US stock indices also dropped significantly as the market braces for the US jobs report. The market is expected to continue yesterday’s trend of lower stocks and a stronger JPY today.

Day trading strategy (1 hour)

Analyzing the 1-hour USDJPY chart, the 28-period moving average seems to be in focus. Following the BOJ governor’s remarks, JPY strengthened further. The drop in stock prices is likely to accelerate the JPY’s strength.

Today’s day trading strategy is to sell. This could be a good time to initiate new short positions. Consider actively shorting the pair. The first target is 144.50 JPY, the second target is 144.35 JPY, and the final target is 143.50 JPY. It’s recommended to adjust the target levels according to your risk tolerance.

Support/Resistance lines

The support and resistance levels to consider going forward are as follows:

143.50 JPY – Major daily support line

Market Sentiment

USDJPY: Sell: 43% | Buy: 57%

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.