USDX
104.165

0.33%

XAUUSD
1825.22

0.74%

WTI
109.262

0.90%

EURUSD
1.04353

0.21%

GBPUSD
1.22520

0.08%

USDJPY
129.082

0.10%

USNDAQ100
12279.54

0.70%

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      USDJPY: High Possibility of Short-term Pullback as Safe-Haven JPY Returns

      Summary:

      Risk assets such as U.S. stocks have been hit hard recently, and the safe-haven JPY is once again in favor, with USDJPY showing a clear bearish trend in the short term.

      Sell USDJPY CLOSED
      EXP

      128.944

      ENTRY PRICE

      127.800

      TGT PRICE

      130.200

      SL PRICE

      129.082 -0.124 -0.10%

      361

      Points

      Loss

      127.800

      TGT PRICE

      TARGET UNREACHED

      129.305

      CLOSING PRICE

      128.944

      ENTRY PRICE

      130.200

      SL PRICE

      Fundamentals

      U.S. CPI fell back in April, indicating that inflation may have reached a top, but it is unlikely to cool down quickly or disrupt the Fed's current plan to tighten monetary policy. Meanwhile, with the scheduled balance sheet reduction, the USD still has the momentum to rise further, which is extremely negative for non-U.S. currencies.
      However, the JPY's previous plunge seems to have reached its limit, increasing the possibility of verbal intervention by the Bank of Japan and other authorities, and the weakening of the JPY has boosted Japanese exports but led to higher import prices. There are already institutional analyses that the JPY is somewhat oversold, and as the Russia-Ukraine conflict remains fraught with uncertainty and global stock markets are hit by the Fed's rate hike, the JPY seems to have regained its safe-haven function, and the current price has become highly configurable. Overall, the USDJPY has revealed a clear bearish trend, and it is expected to have a round of pullback.

      Technical Analysis

      USDJPY: High Possibility of Short-term Pullback as Safe-Haven JPY Returns_1
      In the 1D timeframe, After the highest impact of JPY reached 131.34, it never reached a new high, and the index RSI showed a bearish divergence in overbought zones. After many days, the high position dropped sharply. Under the release of the long-standing bearish strength, a long black body emerged, and once fell below the integer mark of 129.0 and 128.0 continuously. At present, the exchange rate has rebounded, and this week is coming to an end. If the closing price is still below 129.0, the weekly line will continue to have a wave of pullback.
      USDJPY: High Possibility of Short-term Pullback as Safe-Haven JPY Returns_2
      In the 4H timeframe, after the recent high and stable trend of JPY, it broke down and became bearish in the short term. The indicator RSI fluctuated downward and rebounded. At present, the price has rebounded to the top key pressure level around 129.3, and it is still expected to pull back again after the adjustment.
      Attempts could be made to go short around 129.3 when the price stabilizes, with the initial target set below the support near 127.8 and a stop loss set above 130.

      Trading Recommendations

      Trading direction: Short
      Entry price: 129.3
      Target price: 127.8
      Stop loss: 130.2
      Support: 127.8/127.0
      Resistance: 129.3/130.0
      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 strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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      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

      Winkelmann

      analyst

      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.

      Rank

      2

      Articles

      108

      Win Rate

      68.42%

      P/L Ratio

      3.91

      Most Traded Assets

      AUDUSD、USDJPY、NZDUSD

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