USD/JPY Technical Analysis | USD/JPY Trading: 2022-12-20 | IFCM India
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USD/JPY Technical Analysis - USD/JPY Trading: 2022-12-20

USD/JPY Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 139

Buy Stop

Below 133

Stop Loss

Mary Wild
Mary Wild
Senior Analytical Expert
Articles2058
IndicatorSignal
RSI Buy
MACD Buy
MA(200) Buy
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

USD/JPY Chart Analysis

USD/JPY Chart Analysis

USD/JPY Technical Analysis

On the daily timeframe, USDJPY: D1 has come out of a short-term downtrend up. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if USDJPY: D1 rises above the last up fractal: 139. This level can be used as an entry point. The initial risk limit is possible below the last two lower fractals, the 200-day moving average line and the Parabolic signal: 133. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (133) without activating the order (139), it is recommended to delete the order: the market is undergoing internal changes that were not taken into account.

Fundamental Analysis of Forex - USD/JPY

Bank of Japan may keep the rate at the current level. Will USDJPY quotes go up?

The next meeting of the Bank of Japan (BoJ) will take place on the morning of December 20th. If the rate is kept at the current negative level (-0.1%), then this could become a negative factor for the yen. Kyodo News voiced Prime Minister Fumio Kishida's view that a more flexible approach could be used to reach the 2% y/y inflation target. Theoretically, it is possible that the tightening of the BoJ monetary policy may be delayed until the end of April 2023, when the appointment of a new head of the Japanese central bank is planned. In favor of this decision, we can note the stability of Japanese government bonds. In particular, the Japan 10-Year Bond yield has fluctuated around 0.25% per annum since March this year. Recall that the Japan Consumer Price Index rose in October by 3.7% y/y. Data for November will be released on the morning of December 23rd. Japanese inflation is forecast to remain at the same level of 3.7% y/y.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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