USDJPY Analysis: Potential Retracement Ahead
Updated
Over the past few days, USDJPY has reached a new high, reflecting ongoing strength in the dollar amid recent economic data releases. However, a closer examination of the 1-hour timeframe indicates a lack of further upside potential.
Key observations include:
Technical Indicators: Momentum indicators suggest overbought conditions, signaling that a correction may be on the horizon.
Fibonacci Levels: A retracement of up to 50% seems plausible, aligning with historical support levels.
Economic Calendar: Upcoming economic events, including U.S. job reports and inflation data, could add volatility. Traders should stay alert for potential impacts on USDJPY.
Quick reminder: Always ensure proper risk management when trading.
Key observations include:
Technical Indicators: Momentum indicators suggest overbought conditions, signaling that a correction may be on the horizon.
Fibonacci Levels: A retracement of up to 50% seems plausible, aligning with historical support levels.
Economic Calendar: Upcoming economic events, including U.S. job reports and inflation data, could add volatility. Traders should stay alert for potential impacts on USDJPY.
Quick reminder: Always ensure proper risk management when trading.
Trade closed: stop reached
Positive news about the US employment and labor report goes against this trade.
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