Fundamental Analysis

• Today, the U.S. CPI report will be released, with the market expecting weaker numbers in anticipation of a potential rate cut.
• The U.S. presidential candidate debate will also take place, marking a period where the upcoming election is gradually coming into focus.

USDJPY technical analysis

The USDJPY continues its downward trend. It is approaching the lowest point of 141.90 JPY, which occurred during the sharp decline in the Nikkei 225 in August, coinciding with yen appreciation. It is anticipated that it may soon break below 141.90 JPY. The pattern shows lower highs, and the candlesticks forming the recovery highs are creating an engulfing pattern. The 28-day moving average seems to be a key level of interest.

Today, the U.S. presidential candidate debate will take place during the morning in Japan, followed by the U.S. CPI release in the evening. While it’s important to be cautious of rising volatility, from a long-term perspective, the downside risk seems high.

Day trading strategy (1 hour)

Analyzing the USDJPY on the 1-hour chart shows that the recovery is sluggish, and the pressure for yen appreciation is increasing. The conversion line on the 1-hour chart is acting as a resistance line, while the support line at 141.90 JPY is being tested.
Today’s two major events make it difficult to establish a clear trading plan, but technically, the continuation of the downtrend is expected.

Given the uncertainty from these events, specific figures for day trading strategies will not be provided. However, be aware that volatility could significantly increase during and after the events.

Support/Resistance lines

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

• 141.90 JPY: Fibonacci 61.8%

Market Sentiment

USDJPY – Sell: 33%, Buy: 67%

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.