In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for 15th February 2024.
Key Takeaways
- Dollar resilience continues: Market participants expect Federal Reserve rate cut to be around June and July, thus providing greenback some support in the short-term.
- Hope for appreciation of the yen: Based on the continued weakness of the yen, the market expects Kazuo Ueda to raise policy interest rates in March or April. An early interest rate hike could provide quicker support for the yen and prevent the Bank of Japan from intervening in the foreign exchange market.
- Continuous weakness of Yen prompts speculation for a possible policy tightening by Bank of Japan around March or April. The hike may lend support to the Japanese yen which also halts open market interventions.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator begins to form bearish signal in the overbought region, which suggests possible retracement of the pair from its upside.
- Alternative trend line: Next support in-line would be the upward trendline, in which a rebound from this level could halt its short-term weakness and extend its upside towards previous high.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator continues to hover within the oversold region, suggesting possible sideways trending ahead for the short term. It is advisable to wait for further signals before entering the market.
- Downward channel line: Following the recent rebound from the lower boundaries of the descending channel, there is slight possibility for an upside bias. However, we will need further confirmation to deduce its viability.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.0740,
- Bullish Scenario: Bullish sentiment prevails above 1.0740, first target 1.0755, second target 1.0775;
- Bearish Outlook: In a bearish scenario below 1.0740, first target 1.0690, second target 1.0670.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
