- January 8, 2025
- Posted By: mia
- Category: Market News
USD/JPY Forecast: Breaking Down the H4 Ascending Channel
The USD/JPY currency pair, often referred to as “The Ninja,” is one of the most traded pairs in the forex market, combining the world’s largest economy with one of the most influential Asian markets. As a haven currency, the Japanese yen often reacts to risk sentiment, while the U.S. dollar is influenced by global economic conditions and monetary policies. This dynamic creates a highly liquid and volatile trading pair that is a favorite for forex traders globally.
Today’s USD/JPY fundamental overview is shaped by critical economic releases. On the JPY side, labor cash earnings and household confidence data could signal the robustness of consumer spending in Japan, which influences monetary policy. Higher earnings and strong confidence data could strengthen the yen, reflecting improved domestic conditions. Conversely, on the USD side, the ADP employment report, jobless claims, and crude oil inventory data will highlight the health of the U.S. labor market and economic demand. Additionally, speeches by Federal Reserve members may provide insights into future monetary policy, potentially swaying the U.S. dollar. A stronger-than-expected ADP report or hawkish Fed commentary may bolster the dollar, tipping the balance in favor of USD bulls.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The USD/JPY H4 chart reveals a clear ascending channel, with the Ninja’s price action trading near the mid-point of this channel. The resistance at 158.29 appears strong, while support around 156.59 underpins the lower boundary of the channel. The MACD indicator shows a slight bullish momentum, with the signal line remaining above the zero line, suggesting a continuation of the USDJPY bullish bias. However, the histogram reflects some waning strength, indicating potential consolidation in the short term. Meanwhile, the Stochastic RSI is hovering near the overbought zone at 63.14, signaling that bullish momentum may be nearing exhaustion. This could lead to a short-term pullback towards the support level before resuming the uptrend.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.