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USD JPY Technical Analysis - USD JPY Trading: 2022-12-20
USD/JPY Technical Analysis Summary
Above 139
Buy Stop
Below 133
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Buy |
| MA(200) | Buy |
| Fractals | Neutral |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
USD/JPY Chart Analysis
USD/JPY Technical Analysis
On the daily timeframe, USDJPY: D1 has come out of a short-term downtrend up. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if USDJPY: D1 rises above the last up fractal: 139. This level can be used as an entry point. The initial risk limit is possible below the last two lower fractals, the 200-day moving average line and the Parabolic signal: 133. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (133) without activating the order (139), it is recommended to delete the order: the market is undergoing internal changes that were not taken into account.
Fundamental Analysis of Forex - USD/JPY
Bank of Japan may keep the rate at the current level. Will USDJPY quotes go up?
The next meeting of the Bank of Japan (BoJ) will take place on the morning of December 20th. If the rate is kept at the current negative level (-0.1%), then this could become a negative factor for the yen. Kyodo News voiced Prime Minister Fumio Kishida's view that a more flexible approach could be used to reach the 2% y/y inflation target. Theoretically, it is possible that the tightening of the BoJ monetary policy may be delayed until the end of April 2023, when the appointment of a new head of the Japanese central bank is planned. In favor of this decision, we can note the stability of Japanese government bonds. In particular, the Japan 10-Year Bond yield has fluctuated around 0.25% per annum since March this year. Recall that the Japan Consumer Price Index rose in October by 3.7% y/y. Data for November will be released on the morning of December 23rd. Japanese inflation is forecast to remain at the same level of 3.7% y/y.
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