. USDJPY Analysis Report With Charting Trends - 04 September 2023

USDJPY Analysis Report With Charting Trends – 04 September 2023

USDJPY Analysis Report With Charting Trends – 04 September 2023

04 Sep 2023

USDJPY forecast: As Fed hawks struggle, Japan’s GDP and the US ISM Services PMI are being watched, and USD/JPY eases above 146.00.


After a lacklustre start to the crucial week that included Japan’s growth statistics and the US ISM Services PMI, USD/JPY is maintaining its defensive position around 146.10–15 heading into Monday’s European session. The US Labour Day holiday and conflicting hints regarding the US Federal Reserve (Fed) and the Bank of Japan (BoJ) may both be factors in the Yen pair’s most recent inaction.

USDJPY Analysis

The positive Caixin Manufacturing PMI for August in China also helped to boost market confidence. The result for the data was 51.0, up from the previous reading in July of 49.2 and above the market consensus of 49.3.

At the time of writing, the US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) versus the six other major currencies, is trading lower at about 103.50.

During Friday’s European session, USD/JPY is trading down near 145.40, extending losses from the previous day. Due to a statement made by the People’s Bank of China (PBoC) addressing the recent budgetary measures, the pair is under negative pressure.


Exponential Moving Average

  • EMA 5: The 5-day EMA stands at 145.99, indicating a Buy signal.
  • EMA 20: The 20-day EMA is at 145.91, signalling a Buy sentiment.
  • EMA 50: The 50-day EMA currently sits at 145.38, suggesting a Buy indication.

Simple Moving Average

  • SMA 5: The 5-day SMA shows a value of 145.76, reinforcing the Buy recommendation.
  • SMA 20: With a value of 146.07, the 20-day SMA also supports a Buy sentiment.
  • SMA 50: The 50-day SMA registers at 145.76, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 55.36, signifying a positive signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a Positive stance.

Resistance And Support Levels

  • Resistance: The resistance level is observed at 146.67
  • Support: The support level is identified at 145.63

Summary And Trade Suggestions

In summary, the technical analysis of USDJPY points towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favourable for traders to enter a long position.

Trade Suggestion:

  • Entry Point: 147.07
  • Take Profit: 148.78
  • Stop Loss: 145.97