Focus on USDJPY today – 13th June, 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for June 13, 2024. 

Key Takeaways 

• Inflation data: The annual rate of the US unadjusted CPI in May was 3.3%, a three-month low. The annual rate of the US unadjusted core CPI in May was 3.4%, the lowest since April 2021. Inflation slowed unexpectedly, and traders re-priced the possibility of the Fed’s interest rate cut in November to 100%. 
• Expectation of interest rate cut: The Fed kept the benchmark interest rate unchanged at 5.25%-5.50% for the seventh consecutive time, and the dot plot cut the expectation of interest rate cuts this year from 3 to 1 while raising it to 4 next year. Powell said that inflation has eased significantly, but it is still too high. So far this year, they emphasize the need to wait for more data before initiating a rate cut. 
• The Bank of Japan policy decision: Bank of Japan is expected to announce its monetary policy decision tomorrow. Market participants expect the central bank to slow down its bond purchases and reduce its purchase amount to 6 trillion yen a month. Against the backdrop of weak yen, the possibility of taking such measure has increased significantly, suggesting possible appreciation of yen thereafter.  

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator：The fast and slow lines of the indicator slow down and failed to enter quickly into the overbought area, suggesting that the current bullish momentum is weak, and there is a probability of appreciation of the yen at least in the short term. 
• Resistance price: The short trend cannot be confirmed prior to the pair’s closure below 65-MA line. However, based on the current weak rebound, the upper focus is on whether there is a probability of ending the rebound near the 78.6% retracement price, which may turn downward at that time. 

1-hour Chart Analysis 

• Stochastic oscillator: The indicator re-rebounds from the oversold region yesterday and is about to enter the overbought area. There is a certain probability of selling pressure on the exchange rate. 
• Arc top: The pair has formed an arc pattern earlier this week. Following its closure below the neckline, it has since rebounded to the joint suppression area composed of the neckline and the black 65-period moving average. If the pair fails to successfully break through its nearest resistance, there is still a possibility that the yen will appreciate further. 

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 157.10, 
• Bullish Scenario: Bullish sentiment prevails above 157.10, first target 157.45, second target 157.75; 
• Bearish Outlook: In a bearish scenario below 157.10, first target 156.45, second target 156.15. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. 

Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

—– 

Legal Documents 

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius. 

Copyright © 2024 Ultima Markets Ltd. All rights reserved. 

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.