Fundamental Analysis

• Recent updates are the key focus, with USDJPY hovering around 157 JPY.
• USDJPY has rebounded at the conversion line, forming a lower wick.

USDJPY Technical Analysis

Analyzing the daily chart of USDJPY. The conversion line serves as a support level, and the pair formed a lower wick on the final day of 2024 before closing. The strength of dip-buying is notable. For the time being, the recent high of 158.880 JPY is the expected upper target.

The Bank of Japan’s interest rate hikes are already factored in, and there is a possibility of more yen appreciation phases compared to last year. If it declines, the focus may be on breaking below 156 JPY. The new year has started without major disruptions, showing slight gains.

Economic indicators from Europe and the U.S. will resume today, so caution is necessary.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of USDJPY, the pair surged sharply from 156 JPY to around 157.55 JPY. Although it pulled back at the Ichimoku cloud, buying sentiment on dips remains strong. Japan is on a week-long holiday, but economic indicators and stock markets in Europe and the U.S. have resumed trading.

There may be attempts to exploit Japan’s holiday trading lull.

Trading Strategy:
Focus on buying on dips. Take profit around 158 JPY. If the conversion line is breached, stop trading and observe.

Support/Resistance lines

Key support and resistance lines to consider:

• 157.55 JPY – Recent high on the 1-hour chart

Market Sentiment

USDJPY Sell: 71% 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.