Markets Analysis

Fundamental Analysis

• The US CPI is scheduled to be announced today.
• US rate cut speculation gradually recedes, an upside surprise in CPI may jeopardize the start of rate cuts in September.
• USDJPY rose to 151.94JPY but failed to reach the 152JPY level.

USDJPY technical analysis

The daily market for USDJPY has hardly changed. Although it approached 152JPY yesterday, it fell back at 151.94JPY, failing to test the 152JPY level. Below 151.50JPY is also becoming increasingly solid, and there might be a jump to the 152JPY level due to economic indicators and other factors.

The US inflation indicator, the US CPI, is scheduled to be published today, which might increase volatility in USDJPY. The daily RSI is at 60, indicating a stable rise.

Day trading strategy (1 hour)

Analyzing the 1-hour chart for USDJPY. USDJPY fell from the 151.90JPY range to the 151.70JPY range. There might not have been enough buy orders to maintain the 151.90JPY range. However, it rebounded at the 200MA on the 1-hour chart.

Below 151.50JPY also seems somewhat solid, suggesting there might be a certain amount of buy orders. The direction may be determined by whether it breaks below or stays above the 200MA. The RSI is at 48, indicating a slight downtrend.

As a day trading strategy, buying in the early 151JPY range and selling just before 152JPY seems to be a good range strategy. If it breaks below the previous low of 150.85JPY, it would be wise to stop and watch. Also, it’s preferable to refrain from trading just before the CPI announcement.

Support/Resistance lines

The following are the support and resistance lines to consider:

151.94JPY – Recent high

151.58JPY – 200MA on the 1-hour chart

151.15JPY – Lower limit of the range

Market Sentiment

USDJPY Sell: 68% Buy: 32%

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.