Fundamental Analysis

• Reports suggest President Trump is considering dismissing the Fed Chair.
• As the Fed Chair is expected to remain politically neutral, such a dismissal could trigger aggressive USD selling.

USDJPY Technical Analysis

Analyzing the daily chart of USDJPY, the pair has fallen below the 61.8% Fibonacci expansion level, signaling a continued JPY appreciation trend and limited upside potential.

This downward pressure is believed to stem from reports that the Trump administration is contemplating the dismissal of the Fed Chair. As the Fed Chair plays a crucial role in maintaining independent monetary policy, their dismissal would undermine market confidence in the USD, potentially triggering financial instability.

USDJPY has entered the low 141 JPY range, approaching the key 140 JPY level. The 100% Fibonacci expansion level corresponds to around 139 JPY.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of USDJPY, the market opened the week with a sharp decline in the USD, dropping from the 142 JPY range to the low 141 JPY range.
Looking at MACD, a deep trough in the histogram indicates strong downward momentum.

In a market clouded by financial uncertainty due to possible Fed Chair dismissal, there is little appetite for USD buying.
Additionally, with many overseas markets closed for Easter holidays, thin trading volume could lead to heightened volatility.

If USDJPY falls to around 139 JPY — the 100% Fibonacci level on the daily chart — we may see a short-term rebound.

Support/Resistance lines

Key support and resistance lines to consider:

• 142.100 JPY – Resistance
• 141.650 JPY – Previous reversal point
• 139 JPY – Fibonacci level on the daily chart

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.