Fundamental Analysis

• Reports of U.S.–South Korea currency negotiations have triggered a sharp appreciation in the Japanese Yen.
• Full removal of sanctions on Syria may act as a bearish factor for crude oil.

USDJPY Technical Analysis

 Analyzing the daily chart of USDJPY, the pair initially rose above the 52-day moving average and approached the 90-day moving average. However, following reports of US-South Korea currency discussions, USDJPY has fallen for three consecutive days.

The Ichimoku Cloud is acting as a resistance zone, making the market technically favorable for selling on rallies. Currently, the price has dropped below both the 52-day moving average and the conversion line (Tenkan-sen). The RSI hovers around 50, indicating a balance between buying and selling pressure.

Market sentiment shows 63% of traders holding long positions. The 145.00 Yen level is a key support zone; however, a temporary decline toward the base line (Kijun-sen) around the lower 144 Yen range remains possible.

Intraday Trading Strategy (1-Hour Chart)

On the 1-hour chart, USDJPY has declined to the low 145.00 Yen range, with the 200-period moving average capping the rebound. A death cross has formed between the 52-period and 200-period moving averages. The pair continues to fall along the Tenkan-sen, with no sign of reversal yet.

Meanwhile, the RSI is forming higher lows, indicating a classic bullish divergence.

The suggested day trading approach is to buy the dip.

• Entry: Limit order around 144.25 Yen (Daily Kijun-sen)
  
• Take Profit: 145.50 Yen
  

Stop Loss: Below 144.00 Yen

Support & Resistance Levels to Watch:

Support: 144.25 Yen (Daily Kijun-sen)

USDJPY Market Sentiment

• Sell: 37%,Buy: 63％
  

Key Economic Events Today

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.