USDJPY
Fundamental overview
The dollar has been in a general range for the past few weeks. Last week's strength may have been more influenced by end-of-quarter currents than anything fundamental
Even if the US dollar weakens against other major currencies, the yen should still lose ground, and Japanese authorities can't do much to reverse this trend unless fundamental conditions change. We'll likely need weak US growth data to see sustained yen strengthening, though it may be short-lived if it's not enough for the Fed to cut market rates sharply.
On the daily chart,
We can see USDJPY continuing to move higher as the break of the key 160.00 handle and lack of intervention gave buyers more confidence to target new highs.
If we have a pullback to the 160.00 level, we can expect buyers with defined risk to pull back below the level and target the high. On the other hand, sellers want to see the price move back below the 160.00 handle to gain more confidence and start targeting the main trend line around the 157.00 handle.
On the 4-hour chart,
We can see that we have a partial trend line that defines the current uptrend. Buyers continue to rely on the trendline to push to new highs, while sellers should see price break below the trendline to position for a pullback towards the 160.00 handle.
On the 1-hour chart,
We can see a very clean uptrend where the price moves up the trend line before making new highs. All things being equal, we should continue like this, but if the price breaks below the trendline, the sellers will likely take short-term control and offer a pullback towards the 160.00 handle. The white lines mark the average daily range for today.
The dollar has been in a general range for the past few weeks. Last week's strength may have been more influenced by end-of-quarter currents than anything fundamental
Even if the US dollar weakens against other major currencies, the yen should still lose ground, and Japanese authorities can't do much to reverse this trend unless fundamental conditions change. We'll likely need weak US growth data to see sustained yen strengthening, though it may be short-lived if it's not enough for the Fed to cut market rates sharply.
On the daily chart,
We can see USDJPY continuing to move higher as the break of the key 160.00 handle and lack of intervention gave buyers more confidence to target new highs.
If we have a pullback to the 160.00 level, we can expect buyers with defined risk to pull back below the level and target the high. On the other hand, sellers want to see the price move back below the 160.00 handle to gain more confidence and start targeting the main trend line around the 157.00 handle.
On the 4-hour chart,
We can see that we have a partial trend line that defines the current uptrend. Buyers continue to rely on the trendline to push to new highs, while sellers should see price break below the trendline to position for a pullback towards the 160.00 handle.
On the 1-hour chart,
We can see a very clean uptrend where the price moves up the trend line before making new highs. All things being equal, we should continue like this, but if the price breaks below the trendline, the sellers will likely take short-term control and offer a pullback towards the 160.00 handle. The white lines mark the average daily range for today.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.