Comprehensive USD/JPY for 29th November, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/JPY for 29th November 2023. 

USD/JPY Key Takeaways 

• The weak US dollar: Federal Reserve Board members began to give early warning to the market, saying that if inflation continues to fall, interest rates may be justified in a few months, and this has nothing to do with economic pressure. 
• The hard way to normalize policy: The BOJ’s semi-annual financial report showed that as of the end of September, book losses reached US$70.7 billion, the largest loss since fiscal year 2004. While the losses are unlikely to cut stimulus, they suggest the challenges will be great when central banks eventually turn to exit. 

USD/JPY Technical Analysis

USD/JPY Daily Chart Insights

• Stochastic Oscillator: The indicator once again issued a short signal below the 50 midline, suggesting that the early rebound in the exchange rate may be over and will soon usher in a downward trend. 
• Retracing the moving average: The 33-day moving average has continuously supported the upward movement of the exchange rate, verifying the effectiveness of the moving average as moving support and resistance. The exchange rate fell again after rebounding last week and stepping on the black 33-day moving average, further clarifying that the USDJPY is about to decline against. 
• Price Action: The decline was blocked last Tuesday and finally formed a doji bar. Although it rebounded and rose, it failed to break through the moving average resistance. Yesterday’s fall below the cross star became a strong short signal. 

USD/JPY 1-hour Chart Analysis

• Stochastic oscillator: The indicator oscillates in the oversold area, indicating that the current short trend is strong. In the short term, you can focus on intraday short trading opportunities. Investors could close positions immediately after the indicator sends a long signal, and wait for another signal to focus on selling opportunities. 
• Upward line: The red upward trend line is the support level of the daily chart. The exchange rate has fallen significantly in the Asian session. Be wary that the price may rebound if it touches the trend line. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 147.881, 
• Bullish Scenario: Bullish sentiment prevails above 147.881, first target 148.427, second target 149.385; 

• Bearish Outlook: In a bearish scenario below 147.881, first target 146.923, second target 146.359. 

Conclusion