USD-JPY Daily Chart Fundamental Insights and Outlook
The USDJPY, widely known as the “Gopher,” represents the currency pair of the United States Dollar (USD) against the Japanese Yen (JPY). As a highly liquid forex pair, it is closely monitored by traders globally due to its sensitivity to interest rate decisions, geopolitical events, and economic data releases. Today, traders will closely watch the Adjusted Current Account from Japan’s Ministry of Finance and the Eco Watchers Current Index, both of which significantly impact market sentiment towards the Yen. A better-than-expected Current Account surplus or higher Eco Watchers Index could strengthen the JPY by signaling improved domestic economic conditions. Conversely, the USD faces potential volatility due to the NFIB Small Business Index and Fed President Mary Daly’s discussion on the economic outlook and monetary policy, where any hawkish commentary could boost the USD.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Technical analysis of the USD-JPY H4 chart indicates that the price action recently broke through two critical support lines and is currently retesting the second broken support, now acting as resistance at approximately 147.929. Should price action continue its bearish momentum, traders could anticipate targets at Fibonacci retracement levels of 1.618 at 144.065 and potentially 2.618 at 139.738. Parabolic SAR indicates bearish sentiment as the dots remain above the candlesticks, signifying downward pressure. MACD is showing diminishing bullish momentum, potentially signaling a bearish crossover, while the RSI is approaching overbought levels, suggesting possible exhaustion in the recent upward correction and supporting the likelihood of a reversal to the downside.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
