Focus on USDJPY today – 17th April 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for 17^th April 2024. 

Key Takeaways 

• Intervention by the BOJ: The US dollar fell rapidly against the yen on yesterday, widely speculated to be the intervention from the Bank of Japan. However, the historical scale of intervention by the Bank of Japan in 2022 shows that previous intervention lasted only 45 minutes, and at the same time, the minimum decline was more than 400 pips, so the possibility of intervention may be refuted. 
• Intervention outcome varies: Foreign exchange intervention may be difficult to reverse the depreciation of a currency and it only plays a role in slowing down the process, rather than preventing. Appreciation of Japanese Yen is expected due to speculation of rate cut from Federal Reserve, which trigger safe-haven demands.  
• Rate cut may be delayed: Federal Reserve Chairman Powell said yesterday that recent data showed insufficient progress in inflation this year and that it may take longer to restore confidence in inflation. Markets have reduced expectations that the Federal Reserve will cut interest rates more than once this year. 

Technical Analysis 

Daily Chart Insights 

• Stochastic oscillator: The indicator is entangled in the overbought area, implying that the current bulls and bears are still struggling to take over one another. It may be difficult to hypothesis possible trend ahead and it is suggested to wait for a prominent breakout.  
• Potential resistance: The pair’s breakout at 152 opened further appreciation. However, due to lack of minor resistance past this level, we may potentially see the next probable resistance at around 157.034. 

1-hour Chart Analysis 

• Stochastic oscillator: The indicator formed a bullish signal which suggests possible upside in short-term. However, due to the formation of divergence, pay attention to a possible deep adjustment following a short-term rise.  
• Moving average support: The pair remains resilient and well supported above the moving average line. However, due to implications for a possible bearish momentum ahead, pay attention to possible closure below 65-MA line (black) and 33-MA line (red) for further signals.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 154.30, 
• Bullish Scenario: Bullish sentiment prevails above 154.30, first target 155.21, second target 155.47; 
• Bearish Outlook: In a bearish scenario below 154.30, first target 153.87, second target 153.61. 

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.