In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for 19th March 2024.
Key Takeaways
- BoJ interest rate decision: Bank of Japan will be announcing its interest rate decision today and market focus will be placed upon whether negative interest rate policy will be ended earlier. If the decision were placed on hold, selling pressure is expected to push Japanese Yen further downwards.
- Japan’s inflation expectations rises: According to latest data, Japan labor wage grew by 5.28%, stimulating possible uptrend in inflation expectations. We will be monitoring Bank of Japan’s comment on such progression to see if it would provide changes to forward guidance.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator formed bullish signal near the oversold threshold, suggesting further upside ahead. However, with the indicator approaching midline, we suggest being vigilant of a possible resistance for further upside.
- Resistance range: USDJPY has risen significantly following a rebound near the 65-MA line (black). However, currently it faces resistance near 33-MA line (red) and green neckline. A significant extension towards the upside will require a break above 149.20, which will cement its bullish course.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator continues to oscillate at overbought threshold, suggesting imminent downward pressure.
- Upward channel line: The pair extended their upside since last week, while currently limited by the ascending channel. For the time being, we need further monitoring upon its price action in the near-term to determine the next move (retracement from top side or a breakout).
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 148.60,
- Bullish Scenario: Bullish sentiment prevails above 148.60, first target 149.50, second target 149.80;
- Bearish Outlook: In a bearish scenario below 148.60, first target 148.30, second target 148.00.
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.
