During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
JPY: Bulls Eagerly Await the BOJ’s Move
2024-01-22 • Updated
The yen has experienced significant fluctuations in recent weeks, initially gaining ground against the weakening US dollar in December but subsequently losing those gains as the dollar rebounded in January. USD/JPY reached 148.80 on Friday, the highest level since November 28, prompting concerns that if the yen continues to depreciate, the Ministry of Finance might intervene to support it, especially if it breaches the 150 level.
The upcoming policy meeting of the Bank of Japan (BoJ) on Tuesday adds a layer of uncertainty. While the market does not anticipate a change in policy settings, surprises from the BoJ are not unprecedented. Although expectations are for the BoJ to eventually move away from negative interest rates, the prevailing economic conditions, recent earthquake impacts, and upcoming national wage negotiations in March suggest that the April meeting might be more conducive for significant policy announcements. Even if the BoJ maintains its current stance in the upcoming meeting, investors will closely analyze various factors, including updated inflation reports and quarterly economic projections.
CADJPY - D1 Timeframe
CADJPY on the Daily timeframe seems to be setting up for a reversal in the trend. From the price action on the chart, it is evident that price is currently trading within a supply zone, with a likely QMR (Quasimodo Reversal) being formed. The presence of a trendline that overlaps the supply zone serves as an extra confirmation of the bearish sentiment.
Analyst’s Expectations:
Direction: Bearish
Target: 108.631
Invalidation: 110.732
EURJPY - D1 Timeframe
EURJPY is currently trading around 76% of the Fibonacci retracement and can be seen to be under a lot of bearish pressure from the supply zone. On the lower timeframes, I would prefer to see a clear break of structure in order to confirm the validity of my sentiment - remember that.
Analyst’s Expectations:
Direction: Bearish
Target: 158.762
Invalidation: 161.976
USDJPY - D1 Timeframe
As for USDJPY, I have two key areas of interest that I will be watching keenly. I want to patiently watch for the reaction that price ends up making at either of these levels before taking my entry. As you can tell, both areas sync well with the 76% and 88% of the Fibonacci retracement level, so we can wait to confirm which of the two presents a stronger case.
Analyst’s Expectations:
Direction: Bearish
Target: 145.662
Invalidation: 149.832
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
Similar
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Latest news
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...