USDJPY Forecast Using RSI and Stochastic
The USD-JPY forex pair, commonly known as the “Gopher,” represents the exchange rate between the US Dollar and the Japanese Yen, reflecting economic strength comparisons and central bank policies between the United States and Japan. Fundamental analysis for today highlights the upcoming key economic indicators for both USD and JPY, including the US NFIB Small Business Index and Consumer Price Index (CPI). Positive outcomes in these indices, particularly the Core CPI, can strengthen the USD by signaling potential Federal Reserve interest rate hikes to combat inflation. Conversely, Japan’s monetary base and government bond auction results (JGB) will provide insight into the Bank of Japan’s monetary policy outlook, significantly impacting JPY strength or weakness against USD.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The technical analysis of the USD/JPY H4 chart illustrates price action within an ascending channel, currently testing its upper boundary, indicating potential initiation of a corrective phase before the continuation of the prevailing bullish trend. The recently breached resistance at approximately 147.789 may now function as a support level, with the next possible correction target being the channel’s lower boundary around 145.000 to 146.000. The Parabolic SAR supports a bullish trend but hints at cautiousness given the proximity to the channel’s upper limit. Stochastic is displaying overbought conditions, suggesting an imminent price correction. The RSI indicator similarly confirms this scenario by being near the overbought zone, enhancing the likelihood of a short-term bearish retracement within the broader bullish trend.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
