In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for 8th March 2024.
Key Takeaways
- Yen appreciation imminent: Nominal wage income in Japan grew by 2% YoY in January, exceeding forecast of 1.2%. The data is its fastest pace in Japan wage growth since June last year, increasing market optimism towards Bank of Japan to end its ultra loose monetary policy sooner.
- Greenback awaits NFP: US Nonfarm Payrolls data may steer the direction for greenback. However, analysts expect mediocre results partly due to the slight increase in unemployment claims for previous week. A slower jobs market may steer investors away from the greenback and push Japanese Yen upwards.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: Following the formation of bearish signal, the indicator slides below 50 midline which suggests further downside ahead.
- Long-term appreciation is clear: The pair depreciate further following previous closure below the trendline and 33-MA line (black). Recent formation of bearish candle further emphasizes its midterm trend to skew towards bearish.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator forms a bearish signal right above the 50 midline. However, the previous rebound from the MA line suggests possible divergence in momentum, which may lead to short-term appreciation.
- Target price: The 17-MA line (blue) slopes downwards, forming a temporary resistance ahead. If the pair manage to close above the line, the next target will be focus around 33-MA line (black) for short-term before continuing its downside bias for mid to long-term.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 148.30,
- Bullish Scenario: Bullish sentiment prevails above 148.30, first target 148.70, second target 149.10;
- Bearish Outlook: In a bearish scenario below 148.30, first target 147.55, second target 147.10.
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.
