UJ Whales swimming south.
1/19/2023
From a technical perspective, the USDJPY pair holds a bearish tone on the daily charts, as the upward momentum is fading. This can be seen on the 4 hour chart's RSI which is trending up but still remains under the midline. Additionally, the CCI (Commodity Channel Index) is sitting in the consolidation zone. The recent upthrust from Tuesday broke out of the Bollinger band and price is now bouncing off the midline, also known as the 20-day moving average. The 20-day and 50-day moving averages are trending down, with the 50-day crossing below the 200-day moving average. These are bearish indicators, suggesting that the pair may continue to fall in the short-term.
However, it's important to note that technical analysis is just one of the tools to analyze the market and it's always important to consider the fundamentals and other indicators before making any trading decisions.
The Bank of Japan's unexpected action on its 10-year bonds caused the Japanese yen to increase by 4% against the dollar and 3.6% against sterling. This move surprised the FX market as Japan is the third largest economy in the world and plays a significant role in the global market. The BoJ's move also coincides with concerns about an economic slowdown in the US, as retail sales and industrial production both contracted in December. In the Eurozone, the Harmonized Index of Consumer Prices (HICP) annual inflation rate slowed in December, which led to risk aversion and a boost for the dollar.
The information provided by LewkP is for educational and informational purposes only. It should not be considered financial or investment advice. The analysis presented may not be suitable for all investors. Any opinions expressed in this analysis are solely those of LewkP and do not represent the opinions of any other party. LewkP does not provide financial advice and any analysis provided should not be used as the sole basis for making investment decisions. LewkP does not intend for the analysis to be used for intraday trading. LewkP advises that any trading should only be done with caution and only by individuals who are fully in control of their emotions and have a high risk tolerance. LewkP is not responsible for any losses incurred as a result of using the information provided.
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I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
I’m part of a free Discord group where we help each other navigate the market and overcome trading challenges. It’s a friendly, supportive community, with members from around the globe.
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.