Slobodan Drvenica
Windsor Brokers
USD/JPY
USDJPY keeps firm tone in holiday-thinned trading on Thursday and pressuring last Friday’s peak at 157.92 (the highest since mid-July).
The pair is on track for the fourth consecutive weekly gain and for over 5% monthly advance in December.
Hawkish signals from Fed on expectations that inflation will remain elevated for some time and continue to obstruct plans for rate cuts, as well as wide gap between Fed and BoJ monetary policies, continue to support the pair.
Near term price action has established above broken Fibo barrier at 156.67 (76.4% retracement of 161.98/139.57 correction) which now offers solid support, followed by rising daily Tenkan-sen (155.19) and key supports at 153.62/40 (daily cloud top / daily Kijun-sen / broken Fibo 61.8%).
Strong bullish momentum and multiple golden crosses on daily chart support bullish near-term outlook, with thick rising daily Ichimoku cloud underpinning the action.
However, initial warning from overbought conditions should be considered, while traders continue to closely watch the action from Bank of Japan after they have sent a signal in a shape of verbal intervention, with markets expect that the authorities may act somewhere above 160 mark, similar to intervention in July.
Res: 155.95; 156.95; 157.61; 158.00.
Sup: 157.00; 156.55; 155.88; 155.19.
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
USD/JPY remains below 158.00 after Japanese data
Soft US Dollar demand helps the Japanese Yen to trim part of its recent losses, with USD/JPY changing hands around 157.70. Higher than anticipated Tokyo inflation passed unnoticed.
AUD/USD weakens to near 0.6200 amid thin trading
The AUD/USD pair remains on the defensive around 0.6215 during the early Asian session on Friday. The incoming Donald Trump administration is expected to boost growth and lift inflation, supporting the US Dollar (USD). The markets are likely to be quiet ahead of next week’s New Year holiday.
Gold depreciates amid light trading, downside seems limited due to safe-haven demand
Gold edges lower amid thin trading following the Christmas holiday, trading near $2,630 during the Asian session on Friday. However, the safe-haven asset could find upward support as markets anticipate signals regarding the United States economy under the incoming Trump administration and the Fed’s interest rate outlook for 2025.
Floki DAO floats liquidity provisioning for a Floki ETP in Europe
Floki DAO — the organization that manages the memecoin Floki — has proposed allocating a portion of its treasury to an asset manager in a bid to launch an exchange-traded product (ETP) in Europe, allowing institutional investors to gain exposure to the memecoin.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.