USDJPY Forecast: Insights for the New Week & Follow-Up Analysis
Updated
The Japanese authorities are facing mounting pressure as the yen continues to weaken due to market expectations of ultra-low interest rates maintained by the Bank of Japan. The yen gained traction in the second half of the previous week. Speculation of government intervention to counter the currency's weakness added further support. Although direct intervention did not occur, we witnessed a pullback from the key 145 level against the dollar, amidst numerous verbal warnings from Japanese officials cautioning against betting against the yen.
Despite these developments, the outlook for the yen remains uncertain, especially as the Bank of Japan maintains its commitment to loose monetary policy.
Shifting our attention to the U.S. economic landscape, the Labor Department's recent report revealed that June experienced a lower-than-expected increase in new hires, with downward revisions to May's figures. However, the unemployment rate declined to 3.6% in June, and average hourly earnings mirrored the growth seen in May.
Amidst the recent market volatility, there is speculation that despite pausing its rate hike cycle last month, the Federal Reserve might resume rate hikes during its upcoming meeting on July 26.
USDJPY Technical Analysis (Price Action):
This video offers a comprehensive analysis of the current market structure. Our focus centers around the key level of 142.500, which was broken to the downside following a strong bearish move. As price action remains within this zone, it becomes an area of concern, which could potentially lead to choppy consolidation before a clear direction is established. Market participants will closely watch the key economic indicators from the U.S. docket to gauge sentiment. The video examines potential trading opportunities within this area using trendlines and key levels, with particular emphasis on the significance of the 144.000 level as a potential retest for a continuation of the downtrend. The market's reaction to the range around the 142.500 area at the beginning of the new week will heavily influence the direction of price action throughout the upcoming week.
Stay connected to my channel, stay informed by following my updates, and actively engage in the comment section. Together, we'll navigate the dynamic USDJPY market. Wishing you the best of luck as you chart your course in the USDJPY market this week.
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results.
Despite these developments, the outlook for the yen remains uncertain, especially as the Bank of Japan maintains its commitment to loose monetary policy.
Shifting our attention to the U.S. economic landscape, the Labor Department's recent report revealed that June experienced a lower-than-expected increase in new hires, with downward revisions to May's figures. However, the unemployment rate declined to 3.6% in June, and average hourly earnings mirrored the growth seen in May.
Amidst the recent market volatility, there is speculation that despite pausing its rate hike cycle last month, the Federal Reserve might resume rate hikes during its upcoming meeting on July 26.
USDJPY Technical Analysis (Price Action):
This video offers a comprehensive analysis of the current market structure. Our focus centers around the key level of 142.500, which was broken to the downside following a strong bearish move. As price action remains within this zone, it becomes an area of concern, which could potentially lead to choppy consolidation before a clear direction is established. Market participants will closely watch the key economic indicators from the U.S. docket to gauge sentiment. The video examines potential trading opportunities within this area using trendlines and key levels, with particular emphasis on the significance of the 144.000 level as a potential retest for a continuation of the downtrend. The market's reaction to the range around the 142.500 area at the beginning of the new week will heavily influence the direction of price action throughout the upcoming week.
Stay connected to my channel, stay informed by following my updates, and actively engage in the comment section. Together, we'll navigate the dynamic USDJPY market. Wishing you the best of luck as you chart your course in the USDJPY market this week.
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results.
Note
The market continues to display a sense of indecision as both buyers and sellers struggle to gain momentum. The price action is currently confined within a range (142.000 7 143.000), and our focus lies on a break/retest for initiating a position. It is important to note that we have identified a descending trendline that will serve as a reference point to guide our trading activities for the day.NB: We are not going to ignore the fact that the price still remains above the week's key level at the 142.000 zone which keeps the option of buying open.
Good Morning
Trade active
Secure sell positionTrade active
Sell position still running with 78 pips profitTrade active
We currently have two profitable sell positions, gaining around 160 pips. It's now time to secure these positions, as we will be using the recently identified descending trendline as a reference point to guide our trading activities for the day.Good Morning
Trade active
All sell positions closed with approximately 140 pips profit as buy pressure resumed. The inability of sellers to break through the 140.200 is very suspicious hence will be looking out for buying opportunities at the successful breakout/retest of the 140.600 level. Update coming up soonTrade active
Approximately 500pips profit from three positions; time secure positions as we look out for more opportunities.Good Morning
Trade active
Following the breakdown of the 139.400 level and the below-expectation CPI data, additional selling positions were triggered. It is worth noting that a low reading traditionally indicates negativity or bearishness for the Greenback. The question arises: Will the Dollar continue its downward trend? As discussed during our morning live session, the descending trendline remains the benchmark that informs our trading activities today.Trade active
UPDATENote
UPDATEApproximately 900 pips from four positions
Trade active
We have accumulated a substantial profit of 930 pips, and it is crucial to secure all positions accordingly. The market is presently in a consolidation phase, which is typically associated with the anticipation of a high-impact economic event such as the PPI (Producer Price Index). To navigate today's trading activities, we have identified new structures in the 1-hour timeframe to serve as guiding indicators.Good Morning
Trade closed: target reached
The price action successfully hit the TP target at the 137.550 zone, resulting in a remarkable profit of over 1,300 pips. Congratulations to all those who participated in this profitable endeavor. Currently, there are signs of buying pressure emerging as sellers encounter difficulty in pushing below the 137.500 zone. Moreover, the breakout of the descending trendlines, which occurred for the first time this week, suggests a potential reversal in the market. We will delve into a detailed analysis of this development during our upcoming live session.Good Morning
Trade active
Fall out from this morning's live session;Trade active
UPDATESecure buy position
Trade smart. Trade consciously
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