USDX
101.838

0.04%

XAUUSD
1932.57

0.23%

WTI
79.654

0.20%

EURUSD
1.08736

0.05%

GBPUSD
1.23962

0.04%

USDJPY
129.530

0.21%

USNDAQ100
12132.77

0.28%

Global Markets

News
Columns

Topics Columnists

Trending Topics

Russia-Ukraine Conflict

The war between Russia and Ukraine continues, and it is difficult for the two sides to reach an agreement in negotiations. Western countries have imposed several rounds of sanctions on Russia. The outlook is unpredictable.

Situation in Taiwan Strait

Pelosi's visit to Taiwan has led to an escalation of tensions in the Taiwan Strait. Chinese Foreign Ministry spokesperson Hua Chunying said that the U.S. side and the "Taiwan independence" separatist forces colluded to provoke China, which is the fundamental reason for the tensions in the Taiwan Strait.

The Fed

The Federal Reserve (Fed), or the central bank of the United States, is responsible for regulating the U.S. monetary policy and interest rates. As a provider of liquidity for world trade, the Fed is also known as the world's central bank. Its every move affects the global economy and financial markets.

China-U.S. Relations

Focus on Pelosi's Taiwan Visit ! How will China-U.S. relations develop in the future, win-win cooperation or confrontation?

Top Columnists

FastBull Featured

The latest breaking news and the global financial events.

FastBull

Hi there! Are you ready to get involved into the financial world?

Devin Wang

I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.

Winkelmann

7 years of stock market, foreign exchange, precious metal and other trading and analysis experience, based on fundamental, technical support, biased towards the top-down transaction logic, focusing on macro cycle and risk control, multi-purpose supply and demand theoretical prediction price Changes, balances the impact of transactions, chips distribution and market sentiment, and steady.

7x24
Economic Calendar
Quotes

Videos

Trading AcademyTradersDaniel Market Outlook

Latest Update

Follow the Trend? Or Wait?

Crypto Market had a recovery, Bitcoin has up about 39% since Jan, Ethereum has reached the 16k level. Is it good time to follow the trend and buy?

BTC Reaches $21k, Time to Buy? Let’s Do a Statistic Analysis!

Bitcoin recently topped the $21k level. Is it still a good time to buy? Let's do a quick analysis to show you.

FTX’s Customer Recovery Plan

FTX attorney Andy Dietderich claimed FTX has recovered over $5B dollars in cash. Will victims recover their losses soon? Will SBF be responsible for FTX's collapse?

McKinsey’s Report | What Are the Industries Will Adopt Metaverse?

McKinsey reported that metaverse possibly create $5T in value by 2030. Which industry will be impacted the most? How many people would like to take this transition from their real life to metaverse?

Data

Data Warehouse Market Trend Institutional Data Policy Rates Macro

Market Trend

Speculative Sentiment Orders and Positions Asset Correlation

Popular Indicators

Analysis
AI Signals

Trading Signals

Recommended Signals

Pro
Recent Searches
Trending Searches
Quotes
7x24

View All

No data

Login

Sign Up

Membership
Quick Access to 7x24 Real-Time Quotes
Upgrade to Pro

--

  • My Favorites
  • Following
  • My Subscription
  • Profile
  • Orders
  • FastBull Pro
  • Account Settings
  • Sign Out

Scan to download

Faster Financial News and Market Quotes

Download App
Reminder Settings
  • Economic Calendar
  • Market Quotes

Reminders Temporarily Unavailable

I have a redeem code

Rules for using redeem codes:

1.The activated redeem code cannot be used again

2. Your redeem code becomes invalid if it has expired

Redeem
Fastbull Membership privileges
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Real-Time Quotes
View more faster market quotes
Upgrade to FastBull Pro
I have read and agreed to the
Pro Policy
Feedback
0 /250
0/4
Contact Information
Submit
Invite Friends

USDJPY:Blind Bet on Bottom Fishing Not Recommended, Be ware of Another BOJ Surprise Attack

Forex MarketInflation and RecessionCentral Bank Policy Trends
Summary:

USDJPY continued to break down from its consolidation range and fell to its lowest level since the end of May in the early European session. The pair is currently trading above the 128.00 handle and seems vulnerable to extending its downtrend. Meanwhile, sharply slower U.S. inflation data may continue to push the USD lower, thus favoring the JPY.

Sell USDJPY
End Time
CLOSED

130.500

ENTRY PRICE

125.000

TGT PRICE

134.800

SL PRICE

129.530 -0.278 -0.21%

1156

Points

Profit

125.000

TGT PRICE

129.344

CLOSING

130.500

ENTRY PRICE

134.800

SL PRICE

Fundamentals

The USDJPY showed signs of selling today on speculation that the Bank of Japan may act again when it discusses monetary policy at next Wednesday's BOJ meeting.
At the December BOJ meeting, while the BOJ did not call its monetary policy quantitative tightening, the central bank widened its 10-year interest rate target range from 0.25 to 0.50, which caused long-term interest rates to rise further. The USDJPY fell sharply as markets saw this as the possible beginning of the end of quantitative easing.
So will the Bank of Japan take similar action again when it meets next week? According to the Yomiuri Shimbun report, the BOJ will discuss the impact of its unconventional monetary policy and consider adjusting the policy again. In addition, earlier this week, Japan's December CPI showed inflation rose to 4% from 3% and core inflation rose to 4% from 3.6%. Bank of Japan Governor Haruhiko Kuroda continues to say that inflation is temporary. Investors are using this as a proxy for inflation in Japan; and believe that the BOJ may go along with another similar surprise move. Traders are trying to stay ahead of any adjustment in monetary policy. At the December BoJ meeting, traders were caught "offside" and lost a lot of money. However, traders will not let this happen again at next Wednesday's BOJ meeting. For this reason, investors should not blindly intervene early.
The USDJPY fell more than 500 pips after the Bank of Japan's December meeting, with the pair falling from its October highs in an orderly downward-sloping channel. Today's sell-off of more than 330 pips continues the downward trend following the U.S. CPI data for December. If USDJPY continues to move lower, the next support level is at the 61.8% Fibonacci retracement of the 2022 low to high. Lower support is at 126.36.
The JPY is not only appreciating against the USD. The EUR is also down more than 200 pips against the JPY. In a rising wedge pattern for most of 2022, the pair traded at its highest level since 2014 at 148.40. However, on the day of the last BOJ meeting, EURJPY broke below the trend line at the bottom of the wedge and retraced to the 38.2% Fibonacci level from the 2022 low to 2022 high at 139.23. The price bounced back from there but is again close to that level. Support below is at the Jan. 3 low of 137.38 and then the 50% retracement of the above time frame at 136.40.
USDJPY:Blind Bet on Bottom Fishing Not Recommended, Be ware of Another BOJ Surprise Attack_1

Technical Analysis

The drop in USDJPY started with the failure to break the 134.80 resistance level and is now trading below 130.00.
In fact, the pair has been in a channeling downtrend since mid-November; such a curvilinear structure is expected to continue until the start of this year's price spike.
From a technical point of view, the oversold RSI in the hourly chart proved to be the only factor preventing investors from betting on further bearish trades on the pair. However, the oscillators in the daily chart suggest that the path of least resistance for USDJPY remains to the downside. Meanwhile, any further recovery is likely to face fresh selling pressure after meeting immediate resistance near the mid-131.00s, targeting the 125.00 level where this year's surge began. However, bull momentum is more likely to be limited at the 130.50-130.60 level and fade quickly.
On the other hand, the multi-month low near 128.10 reached during the Asian session on Friday now seems to be its short-term support. This is followed by the 128.00 round figure mark, the 61.8% Fibonacci retracement level of the strong 2022 rally. A convincing break below this retracement would be seen as an immediate trigger for a new round of bearish bets and make the pair even more vulnerable.
Overall, the current further downward action is unsustainable, but blind bottom fishing is not recommended. It is recommended to go short at higher channel range pressure levels.

Trading Recommendations

Trading Direction: Short
Entry Price: 130.50
Target Price: 125.00
Stop Loss: 134.80
Valid until: 2023-01-25 23:55:00
Support: 128.10, 127.54, 126.36
Resistance: 129.46, 131.00, 132.96
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or signal, or any other product is suitable for you based on your investment objectives and financial situation.

Quick Access to 7x24

Quick Access to More Editor-selected Real-time News

Full Access to Pro Video Channel

FastBull project team is dedicated to create exclusive videos

Real-Time Quotes

View more faster market quotes

More comprehensive macro data and economic indicators

Members have access to entire historical data, guests can only view the last 4 years

Member-only Database

Comprehensive forex, commodity, and equity market data

Eva Chen

Analyst

Master of Economics, 8 years in the financial industry, CFA holder, joined HSBC (Hong Kong) Bank in 2013 after graduating from the University of California, USA in the Investment Research and Markets Department. With years of financial market experience and trading experience, having provided excellent investment advice to many brokerages, entity derivatives importers and clients in Greater China.

Rank

5

Articles

480

Win Rate

65.12%

P/L Ratio

0.62

Focus on

XAUUSD, WTI, USDCAD

Related Analysis

WTI: Bulls Are Gathering, Buying Dips Recommended

TRADING

AUDUSD: Bullish Momentum Remains Absolutely in Control Despite Bull Stagnation

TRADING

DJIA: Strong Sell-off May Stop While Bottom Support Not Solid

PROFIT +11489 Points

WTI: Trend Rally Not Yet Over, Oil Price Correction May Limited

PROFIT +1690 Points

DJIA: It Is Recommended to Go Long at the Lows as U.S. Stocks Diverged

LOSS -32089 Points
FastBull
English
English
简体中文
繁體中文
العربية
Telegram Instagram Twitter App Store App Store App Store Google Play
Copyright © Fastbull Ltd
Home News Columns AI News Economic Calendar Quotes Videos Data Warehouse Analysis AI Signals Pro User Agreement Privacy Policy About Us

Risk Disclosure

The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.

Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.