- December 19, 2024
- Posted By: james w
- Category: Market News
USDJPY Forex Pair Outlook for Intraday Traders
The USDJPY, often referred to as the “Ninja,” is a widely traded currency pair that represents the exchange rate between the U.S. Dollar (USD) and the Japanese Yen (JPY). This pair is influenced heavily by interest rate policies and economic events from the Bank of Japan (BOJ) and the U.S. Federal Reserve, making it a key focus for forex traders worldwide.
Today, the Bank of Japan’s tentative monetary policy announcements and Governor speeches will dominate the JPY’s outlook. Any hawkish stance or unexpected positive signals regarding Japan’s economic growth could strengthen the Yen, causing a pullback in USDJPY. However, with the U.S. releasing crucial economic data, including GDP figures and Initial Jobless Claims, the Dollar could gain momentum if data shows robust economic growth or lower unemployment claims. Traders will closely watch these releases, as they provide a clear signal on future Federal Reserve policy directions, particularly regarding inflation and interest rate hikes.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
From a technical perspective on the H4 chart, USDJPY remains firmly in a bullish trend within an upward price channel. The price is trading above the Ichimoku Cloud, a strong bullish signal, and has reached the 0.236 Fibonacci retracement level near 154.63, which now acts as short-term resistance. Should this level break, the next target could be the upper boundary of the price channel around 155. Meanwhile, the Williams %R (14) indicator, currently at -14.00, shows overbought conditions, signaling a potential temporary correction before another upward move. A bounce off the channel support around 153.55 would validate continued bullish price action, while a break below could indicate a deeper retracement toward the 152.71 level.
DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.