USDJPY | Perspective for the new week | Follow-up
In Japan, the Bank of Japan's Governor Kazuo Ueda highlighted that underlying inflation remains slightly below the 2% target during a Federal Reserve research symposium. This observation reaffirms the central bank's commitment to maintaining the current monetary policy approach. Despite core consumer inflation in Japan hitting 3.1% in July, companies passing on higher costs have sustained inflation above the 2% target for the 16th consecutive month.
Meanwhile, in the U.S., Federal Reserve Chair Jerome Powell's recent speech at the Jackson Hole symposium solidified the Fed's intention to uphold a 'higher for longer' outlook on interest rates and bond yields. This stance is a boon for dollar enthusiasts, especially considering the contrasting economic scenarios. The U.S. economy is exhibiting robust performance, with the latest Atlanta Fed tracking estimate indicating a near-6% annualized growth rate.
The widening short-dated yield spreads, which often influence exchange rates, favor the dollar over the Yen in recent weeks. This shift enhances the potential for the dollar to ascend into a higher trading range relative to the Yen.
As we navigate the upcoming week, it's crucial to consider these significant market drivers.
USDJPY Technical Analysis:
In this video, we conduct an in-depth technical analysis of the USDJPY chart, carefully examining the current market structure which is evidently bullish. Our primary focus is still within the key zone of 146.500, which will serve as our center of focus ahead of the upcoming week. As price action remains within this zone, it becomes an area of interest that has led to choppy consolidation before a clear direction emerges. The market's reaction around this area at the beginning of the new week will heavily influence the trajectory of price action in the days to come.
Join me on this journey as we explore potential trading opportunities using trendlines, key levels, and chart patterns. Be sure to stay connected to my channel, follow my updates, and actively engage in the comment section as we navigate the dynamic USDJPY market together.
Wishing you the best of luck as you chart your course in the USDJPY market this week.
#USDJPY #technicalanalysis #tradingopportunities #inflation #monetarypolicy #Fed #interestrates #economicanalysis #Forextrading
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Meanwhile, in the U.S., Federal Reserve Chair Jerome Powell's recent speech at the Jackson Hole symposium solidified the Fed's intention to uphold a 'higher for longer' outlook on interest rates and bond yields. This stance is a boon for dollar enthusiasts, especially considering the contrasting economic scenarios. The U.S. economy is exhibiting robust performance, with the latest Atlanta Fed tracking estimate indicating a near-6% annualized growth rate.
The widening short-dated yield spreads, which often influence exchange rates, favor the dollar over the Yen in recent weeks. This shift enhances the potential for the dollar to ascend into a higher trading range relative to the Yen.
As we navigate the upcoming week, it's crucial to consider these significant market drivers.
USDJPY Technical Analysis:
In this video, we conduct an in-depth technical analysis of the USDJPY chart, carefully examining the current market structure which is evidently bullish. Our primary focus is still within the key zone of 146.500, which will serve as our center of focus ahead of the upcoming week. As price action remains within this zone, it becomes an area of interest that has led to choppy consolidation before a clear direction emerges. The market's reaction around this area at the beginning of the new week will heavily influence the trajectory of price action in the days to come.
Join me on this journey as we explore potential trading opportunities using trendlines, key levels, and chart patterns. Be sure to stay connected to my channel, follow my updates, and actively engage in the comment section as we navigate the dynamic USDJPY market together.
Wishing you the best of luck as you chart your course in the USDJPY market this week.
#USDJPY #technicalanalysis #tradingopportunities #inflation #monetarypolicy #Fed #interestrates #economicanalysis #Forextrading
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Comment:
In the face of disappointing Japanese unemployment rate data, which came in at 2.7%—higher than anticipated—the US dollar has yet to seize the opportunity to break the resistance line during the Asian session. Despite this, trading activities have been confined within the 146.620 to 146.280 range since the week's inception, highlighting a prevailing uncertainty in the market. It's noteworthy, however, that the price action's inability to break out the resistance line within this range raises questions, especially in conjunction with the breakdown of the ascending trendline. This confluence hints at the emergence of sellers, potentially intensifying the prospect of a breakdown below the support line at the 146.300 region to incite a possible sell-off.
Good Morning
Good Morning
Trade active:
UPDATE:
After securing a profit of more than 35 pips, price action has successfully breached the resistance line at 146.620. Safeguard your positions while we remain vigilant for new key levels that could contribute to a potential uptrend scenario.
After securing a profit of more than 35 pips, price action has successfully breached the resistance line at 146.620. Safeguard your positions while we remain vigilant for new key levels that could contribute to a potential uptrend scenario.
Trade closed manually:
Buy position is closed with a modest profit as selling pressure resumes. Is this a retracement move or an outright sell-off? Well, the structure will tell! Let's remain patient and see how the market reacts to the range we identified at the beginning of the week for our next course of action. Buying pressure will welcome an uptrend continuation while a breakdown followed by selling pressure will welcome selling opportunities. I will keep you posted.
Trade active:
UPDATE
Secure sell position
Secure sell position
Trade closed manually:
The selling position was exited, securing a modest profit, as renewed buying pressure emerged precisely at the point where the ascending trendline, identified on the higher time frame, was tested. This occurrence suggests the potential of the uptrend continuation. At this juncture, we will remain patient to observe the market participants' response within the range of 146.280 and 146.500. Our focus will be on identifying patterns that align with a continuation of the uptrend. Furthermore, we are keeping an eye on the ADP employment change and the Gross Domestic Product figures from the US economic calendar today, as they could offer additional insights and guidance.
Good Morning
Good Morning
Trade active:
So, as highlighted in our earlier live session this morning, it's prudent to secure the sell position at this juncture, considering the possibility of a formation of a "higher low."
Trade active:
Initiate a cautious sell stance as the price movement encounters resistance within the 145.800 zone. The emergence of a breakdown/retest of this zone could potentially unlock additional selling opportunities.
Alternatively, if the prevailing buying pressure manages to endure within this zone, a breakout/retest of both the descending trendline and the 146.050 level could present favorable buying prospects.
Adding to the complexity of today's trading landscape, it's essential to note that this marks the final trading day of the month—a period traditionally linked to profit-taking activities. Furthermore, another impactful economic factor today is the US Core Personal Consumption Expenditures - Price Index, poised to provide vital insights.
Good Morning
Alternatively, if the prevailing buying pressure manages to endure within this zone, a breakout/retest of both the descending trendline and the 146.050 level could present favorable buying prospects.
Adding to the complexity of today's trading landscape, it's essential to note that this marks the final trading day of the month—a period traditionally linked to profit-taking activities. Furthermore, another impactful economic factor today is the US Core Personal Consumption Expenditures - Price Index, poised to provide vital insights.
Good Morning
Trade active:
UPDATE
Buying pressure persists as 145.800 remains a barrier for sellers as discussed during our live session this morning
Buying pressure persists as 145.800 remains a barrier for sellers as discussed during our live session this morning
Trade closed: stop reached:
Unfortunately, stop-loss has been triggered on the previous buy position. Kindly remain patient for fresh signals and confirmation, as a sense of indecision continues to prevail within this market.
Comment:
After being taken out of the buy position in a loss yesterday, the trading activities has remain range-bound, with price action confined within the narrow range of 145.600 to 145.360. This range underscores the prevailing indecision in the market, particularly in anticipation of today's pivotal release of the NFP data. This economic report is expected to provide deeper insights, prompting traders to reevaluate their expectations regarding the potential for a year-end interest-rate hike by the US Federal Reserve. Therefore, we must exercise patience, awaiting a clear signal in the form of a range breakout to identify viable trading opportunities. It's essential to emphasize the need for confirmations before entering positions, as we find ourselves at a critical juncture in the market.
Happy new month!
Happy new month!
Trade active:
Sell position triggered at the breakdown of the support line of the range at the 145.360 level; secure position. The US NFP data came in beyond expectation but levels with the previous month at 187K; market reaction is bearish for the Greenback as we look out for more selling opportunities should retest of structure happens.
Trade active:
UPDATE
Trade smart. Trade consciously
Good Morning