USD/JPY - Bulls defending ?
Monday may show significant volatility in markets following Trump investiture. Where the dollar will head to remains uncertain, number of FED cuts for 2025 remain uncertain but recent NFP reports and CPI showed strength in labor market and higher inflation, leaning towards a hawkish Fed for this start of the year.
What matters for next week is Trump's investiture, market will be responsive to any type of communication from the incoming president. Trump has made it clear that he wants a weak dollar to reduce the trade deficit. Technical show that Dollar has gained incredible momentum over the past 4 weeks. There will be a clear dilemma for the markets on will Trump's politic will be inflationary (and cause Fed to hold rates higher for longer) or will he succeed in implementing a weaker dollar. Historically, Dollar fell the first months Trump was in office in 2017.
- Currently, USD/JPY FX:USDJPY is trading around a key area around 156.000 around the 4H 20 EMA. Bulls showed up on Friday.
Bulls reclaim 156.000 area of this 4H trading range:
- If dollar remains strong next week, we could see the USD/JPY continue to trade within this 4H range, which would confirm a failed breakout from this TR and put our next target on 158.000. Multiple ways to trade this, scale in if bulls strong on Monday for aggressive traders or wait to see to see consecutive 4H bull bars for entries.
-Valid fake outs often lead to aggressive moves in the opposite direction of the breakout as sellers may be trapped in a loosing trade leading to both bulls and bears buying.
DXY TVC:DXY bounced of the bullish trending line:
- The play for next week could be to see the dollar rally towards 110.000-110.500 area and see some potential reaction there, potentially some sideways trading before market decides its next move.
Remember to be careful on this, last week USD/JPY was a bear bar closing below its lower half which may be a sell signal for next week. Next week will be volatile for markets so I'd recommend lowering your trading size.
This is a C setup.
Peace,
USDJPY
GBP/USD: BOE Is Ready for the Big Cut!GBP/USD shows mixed signals, remaining below 1.2350, influenced by economic and political factors in both the UK and the US. After a strong rally on Monday, the pair lost momentum on Tuesday, driven by the recovery of the US Dollar and overall disappointing UK labor market data. The rise in the unemployment rate to 4.4% and a slowdown in employment growth weigh on the Pound, despite an annual wage increase of 5.6%. From a technical perspective, the RSI on the 4-hour chart signals a loss of bullish momentum, approaching the neutral level of 50 after being in the overbought zone. Key support levels are located at 1.2230 and 1.2200, while resistances are seen at 1.2350.
The Pound is also affected by an uncertain macroeconomic context, with Trump's comments indicating potential tariffs on China, Mexico, and Canada, supporting a recovery in the Dollar due to its safe-haven status. In the absence of significant US economic data, investor focus shifts to stock market performance: a negative opening on Wall Street could support the Dollar, exerting additional bearish pressure on GBP/USD. In the short term, the pair may remain under pressure, with a potential test of key support levels, unless more solid signs of Pound strength or Dollar weakness emerge.
GOLD FURTHER SELL OFF?! (UPDATE)As you can see from the last update, Gold has decided to push higher towards our 'Option 2' scenario. We've seen huge bullish momentum since the start of this year, which I'm viewing as liquidity grab for the year, before it can move down.
Gold is creating an 'Extended Flat Correction' hence why we are seeing such a long consolidation. Have to learn to exercise patience in these slow market conditions.
USD/JPY H4 | Pullback resistance at 61.8% Fibonacci retracementUSD/JPY is rising towards a pullback resistance and could potentially reverse off this level to drop lower.
Sell entry is at 157.10 which is a pullback resistance that aligns with the 61.8% Fibonacci retracement level.
Stop loss is at 159.00 which is a level that sits above a swing-high resistance.
Take profit is at 155.09 which is a multi-swing-low support that aligns close to the 38.2% Fibonacci retracement level.
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Levels discussed on 20th Jan 2025 Livestream20th January 2025
DXY: Currently below 109.40, break above, could trade up to 110 (previous swing high), beyond that, strong resistance at 111
NZDUSD: Sell 0.5575 SL 25 TP 60
AUDUSD: Sell 0.6170 SL 15 TP 40
GBPUSD: Sell 1.2150 SL 15 TP 40
EURUSD: Sell 1.0310 SL 30 TP 110
USDJPY: Buy 156.70 SL 40 TP 120
EURJPY: Sell 161.10 SL 40 TP 120
GBPJPY: Looking for reaction at 191.15
USDCHF: Choppy between 0.91 and 0.9150
USDCAD: Buy 1.4480 SL 30 TP 60
XAUUSD: Needs to stay above 2694 (trendline) to trade up to 2722 resistance
USD/JPY Under Pressure: Yen Strengthens Amid Bearish MomentumThe USD/JPY pair exhibits a clear bearish inclination, driven by a combination of economic and market factors that are strengthening the Japanese Yen and weakening the US Dollar. Currently, the pair has dropped to approximately 155.60, recording a 0.44% loss for the day, with sellers evidently attempting to push the price further toward critical support levels between 154.90 and 153.15. The downward pressure is amplified by rising expectations of a rate hike by the Bank of Japan, further supported by recent positive data such as improvements in Japan’s core machinery orders, signaling a recovery in capital expenditure. Simultaneously, uncertainty surrounding the economic policies of the Trump administration contributes to a negative climate for the US Dollar, which is already under pressure from a recent slowdown in buying flows.
From a technical perspective, the pair has encountered significant resistance in the 156.55-156.60 region, a level that halted previous recovery attempts and now acts as a key barrier. For a meaningful trend reversal, a sustained breakout above this resistance, followed by consolidation above 157.00, would be necessary to pave the way toward recent highs at 158.00 or even 158.85. However, the likelihood of a downward breakout seems more tangible, considering that the support at 155.25 represents the last defense before a drop toward the psychological level of 155.00 and further toward 154.60 and 153.30.
The current market environment, characterized by reduced trading volumes due to Martin Luther King Jr. Day in the US, suggests caution for traders, as dynamics could quickly shift with the return of liquidity and the announcement of potential monetary or political decisions in both Japan and the US. The combination of positive economic data for Japan and expectations of higher rates positions the Yen in a place of strength, while the Dollar may continue to struggle without a clear positive catalyst. Holding below 155.00 would be a significant signal for bears, indicating an extended downward trajectory toward deeper support levels.
Bullish bounce?USD/JPY is falling towards the support level which is an overlap support and could bounce from this level to our take profit.
Entry: 155.02
Why we like it:
There is an overlap support level.
Stop loss: 154.19
Why we like it:
There is a pullback support level that aligns with the 138.2% Fibonacci extension.
Take profit: 156.61
Why we like it:
There is an overlap resistance level.
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USD/JPY calm in holiday tradeThe yen is almost unchanged on Monday. In the European session, USD/JPY is trading at 156.37, up 0.06% on the day. We can expect a quiet day, as the US observes Martin Luther King Day and Donald Trump will be sworn in as President.
The yen is coming off a busy week, with sharp swings on each of the past three trading days. The Japanese currency gained 0.95% last week, its best week since November. Still, USD/JPY remains high and investors are anxiously awaiting the Bank of Japan rate decision on Jan. 24.
There are no tier-1 releases out of Japan this week but investors will be busy keeping an eye on the Bank of Japan rate decision on Friday. The central bank tends not to telegraph its intentions but has hinted at a rate hike and the market will be on the lookout for any hints or signals from BoJ policy makers ahead of the rate decision.
The BoJ is widely expected to raise rates to 0.50%, which would be the highest level since the 2008 global financial crisis. After decades of deflation and an ultra-loose monetary policy, inflation has taken root and the BoJ is slowly moving towards normalization.
Inflation has been above the BoJ's 2% target for almost three years and higher wage growth means that inflation should remain sustainable as it moves higher. The weak yen is another reason for the BoJ to raise rates and make the yen more attractive to investors.
The big question mark is Donald Trump, whose has promised tariffs on US trading partners, which threatens to shake up the financial markets and damage Japan's crucial export sector. The Trump factor is unlikely to prevent a rate hike this week, but supports the case for the BoJ to wait several months before delivering another rate hike.
USD/JPY tested support at 155.88 earlier. Below, there is support at 155.39
There is resistance at 156.79 and 157.28
USDJPY Is Very Bearish! Sell!
Please, check our technical outlook for USDJPY.
Time Frame: 12h
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is on a crucial zone of supply 156.291.
The above-mentioned technicals clearly indicate the dominance of sellers on the market. I recommend shorting the instrument, aiming at 154.540 level.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
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GBPJPY and USDJPY Top-down analysisHello traders, this is a complete multiple timeframe analysis of this pair. We see could find significant trading opportunities as per analysis upon price action confirmation we may take this trade. Smash the like button if you find value in this analysis and drop a comment if you have any questions or let me know which pair to cover in my next analysis.
USDJPY Short? Patience is key hereYes, price reached the white Center-Line, which means: Price is at balance.
And yes, price is at the red U-MLH, which means: price is stretched.
Two good indications that a potential breather is lurking in the throat. But I'd better wait for more evidence. More momentum to the south.
Not stalking yet, but observing on the lower time frame too.
Fundamental Market Analysis for January 20, 2025 USDJPYThe Japanese yen (JPY) has seen an influx of buyers following its decline in the Asian session and a pause in its correction from the nearly four-week high reached on Friday against its US counterpart. An increase in Japan's core machinery orders for the second consecutive month has indicated a potential recovery in capital spending. Additionally, the likelihood of the Bank of Japan (BoJ) raising interest rates at its meeting later this week is also supporting the yen, which, along with moderate weakening in the US dollar (USD), has led the USD/JPY pairing back below 156.000 over the past hour.
Despite growing confidence that the Federal Reserve (Fed) will pause its rate-cutting cycle this month, signs of weakening US inflation may allow the central bank to continue lowering borrowing costs into 2025, which has been a key factor in the recent decline in US Treasury bond yields. This has narrowed the yield differential between the US and Japan and provided further support for the yen. However, the potential for new US President Donald Trump's trade policies to impact market sentiment could influence the yen's performance, particularly in anticipation of the Bank of Japan meeting scheduled for Thursday.
Trade recommendation: We follow the level of 156.000, if we consolidate above it we consider Buy positions, if we rebound we consider Sell positions.
USD/JPY: Consolidation Ahead of Big MoveLooking at the 4-hour chart of USD/JPY, I see the pair is currently trading around 155.79, with a notable reaction at the support area near 155.50. The 34 EMA and 89 EMA have started to widen their gap, indicating that the bearish pressure is still in place. However, the 155.50 price zone acts as an important psychological support, creating a temporary balance between buyers and sellers.
The 34 EMA acts as dynamic resistance near 156.20. If the price fails to break above this level, the downtrend is likely to continue.
A break below 155.50 could drag the price to test deeper support at 154.80 – a strong support level in previous sessions.
Conversely, if the price breaks above the 34 EMA, the pair could test the higher resistance at 156.80, near the 89 EMA.
Bearish drop off pullback resistance?USD/JPY is rising towards the resistance level which is a pullback resistance that is slightly below he 50% Fibonacci retracement and could drop from this level to our take profit.
Entry: 156.78
Why we like it:
There is a pullback resistance level that is slightly below the 50% Fibonacci retracement.
Stop loss: 158.12
Why we like it:
There is a pullback resistance level.
Take profit: 155.02
Why we like it:
There is an overlap support level.
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Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Weekly Forex Trade Planning SessionAnalysed Pairs: CAD/JPY, GBP/USD, USD/JPY, USD/CAD, EUR/CAD
Market Overview:
USD & JPY: Bullish
CAD: Mixed
EUR & GBP: Weak
Price Analysis:
CAD/JPY:
Trend: Downtrend
Current Position: At Momentum Low
Outlook: Expecting a bullish pullback in the next phase.
GBP/USD:
Trend: Downtrend
Current Position: Trading at Momentum Low 5
Outlook: Potential for bearish continuation. Watch for a bullish reversal above 1.2186. A break below 1.2160 could signal further downside.
USD/CAD:
Trend: Strong Uptrend
Current Position: After a trend reset breaking the momentum high
Outlook: Avoid buying at the high; wait for a pullback to go long. Alternatively, look for short opportunities if the price breaks below the reset point.
USD/JPY:
Trend: Correction in Downtrend
Current Position: Observing Wave Structure 3
Outlook: Potential for a bullish secondary trend. Using Fibonacci levels, the price has paused at the 61.8% T2 target. If the high of Wave 3 isn't broken, the downtrend may resume.
EUR/CAD:
Trend: Trend-changing pattern after last pullback
Outlook: Look to sell on a break below 1.4860, with targets at 1.4825 and 1.4810.
Happy Trading!
USDJPY TRADE IDEA: LONG | BUY - W/B: 19/01/25UJ is going to be bearish for the next day or so, therefore taking opportunities as it goes up makes most sense. This is the entry I have found as the reversal has been made official.
RR: 3.64
N.B.: This is not financial advice. Trade safely and with caution.
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Goal 🎯: Bullish Robbers TP 160.00 (or) Before
Bearish Robbers TP 155.500 (or) Before
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The upcoming PPI news is expected to be positive, with the Producer Price Index for final demand predicted to rise. This is based on the recent trend of increasing prices for final demand goods and services. In the previous month, the index for final demand goods moved up 0.7 percent, with prices for final demand foods jumping 3.1 percent. The index for final demand services also rose 0.2 percent, led by a 0.8-percent increase in margins for final demand trade services.
Upcoming Fundamental Indicators:
Interest Rate Divergence: US Federal Reserve vs. Bank of Japan
US Economic Data: Non-Farm Payroll, GDP growth rate
Japanese Economic Data: GDP growth rate, inflation rate
Trade Tensions: US-Japan trade tensions
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Bullish Sentiment: 70%
Bearish Sentiment: 30%
Neutral Sentiment: 0%
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USDJPY Retest Completion and Bounce BackThe USDJPY pair is currently trading at a price of 156.000, with a target price set at 162. This suggests a potential gain of over 500 pips, indicating a significant upward movement. The market analysis highlights that the pair has recently completed its retesting phase at a critical support level. This retest confirms the strength of the support, as the price has now started to bounce back from this zone. The pattern identified is based on support and resistance, a common and reliable technical strategy in forex trading. A bounce from support often signals a bullish trend, making this an opportune time for buyers. Traders may view this as a favorable entry point, with the potential for strong gains. However, proper risk management and market monitoring are crucial. The setup aligns with technical indicators supporting the bounce scenario. The movement suggests the pair is regaining bullish momentum.