In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for June 27, 2024.
Key Takeaways
- Fed took the hawkish route: Yesterday, Fed Chair Jerome Powell signaled that there may not be any rate cut for the year. The latest hawkish tilt placed a dent on Japanese yen, which may force Japanese authorities to safeguard their currency from falling further against the greenback.
- Impact of data: For the week, the US will be releasing the PCE Price Index, which may show further signal on US economic progression and inflation progress. On the other hand, Japan will also release their regional unemployment rate that could induce some volatility on Japanese Yen.
Technical Analysis
Daily Chart Insights
- MACD: The indicator shows increasing bullish momentum, suggesting possible extension towards the upside. It is suggested to wait for a close above 158.06 to attain further confirmation.
- Beware of false breakthroughs: Yesterday, the pair closed above their previous high, in tandem with current bullish signal as portrayed by the indicator. Nonetheless, due to possible formation of divergence and bearish engulfing pattern, be vigilant for a pullback.
1-hour Chart Analysis
- Stochastic oscillator: The indicator forms bearish signal as it exists overbought region, suggesting an extension to the downside for short-term.
- Support price: The pair breaches the threshold of 160, which may prompt intervention in the forex market by Japanese authorities. It is suggested to pay attention for a possible pullback if the pair closes below both moving average lines.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 160.20,
- Bullish Scenario: Bullish sentiment prevails above 160.20, first target 160.95, second target 161.25;
- Bearish Outlook: In a bearish scenario below 160.20, first target 159.85, second target 159.40.
Conclusion
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Disclaimer
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.
