USDJPY Analysis: US-Japan Talks are The Key
Fundamental Analysis of USDJPYUSDJPY Key Takeaways
- US-Japan trade negotiations: Bessant will meet with Japanese Finance Minister Katsunobu Kato during the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington later this week. As it is widely believed that US President Trump prefers a weaker dollar to stimulate US manufacturing, currency traders are closely watching whether the US-Japan talks will involve exchange rate issues.
- Japanese Prime Minister speaks: Japanese Prime Minister and Liberal Democratic Party President Shigeru Ishiba said in the party leader debate that day that the global free trade system must be protected. Shigeru Ishiba said that in response to the tariff negotiations between Japan and the United States, the importance of free trade must be explained to the United States.
Technical Analysis of USDJPY
USDJPY Daily Chart Insights
- Stochastic oscillator: The indicator sends a bullish signal in the oversold area. At the same time, the exchange rate accelerates after forming a pin bar, which makes it clear that the rebound trend is coming. It is not advisable to short easily in the short term.
- Resistance area: Although the exchange rate rebounded strongly yesterday, there are many resistances above and it may fall into adjustment next. The exchange rate is about to approach the purple 13-day moving average, which is also near the downward trend line. If it continues to break through, it will not be far away from 144.55-the lower edge of the previous oscillation range.
USDJPY 2-hour Chart Analysis
- Stochastic oscillator: The indicator sends a bullish signal again above the 50 median line, which means that the market continues the rebound trend. It is worth noting that the current exchange rate and the indicator form a potential top divergence pattern, so be alert to the probability of subsequent downward adjustments.
- Upper resistance: Based on the fact that the exchange rate still broke through the intraday high after a sharp retracement to the purple 13-period moving average, it is clear that the bullish trend is strong. The next target is to look at the green 200-period moving average, which is also near the 144 integer mark on the upper edge of the oscillation range.
USDJPY Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 142.16,
- Bullish Scenario: Bullish sentiment prevails above 142.16, first target 143.57, second target 143.89;
- Bearish Outlook: In a bearish scenario below 142.16, first target 141.62, second target 141.30.
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