USD/JPY Forecast: Riding the Bearish Wave with Tactical Insights
Traders Reevaluate Rate Cut Expectations
FUNDAMENTAL OVERVIEW:
Dollar Dynamics: Traders reassessed their expectations of larger Fed rate cuts, causing the dollar to regain ground. Key data releases include U.S. job openings and ISM services activity, impacting the anticipated rate cuts. The dollar index edged up 0.1%, reaching one-week highs. Traders priced in at least 125 basis points of Fed rate cuts, while the ECB’s first rate cut is expected by March 2024.
Technical Overview – USD/JPY:
- Moving Averages: Exponential MA 10, 20, and 50 show a negative crossover (bearish).
- RSI: 39.29 (Neutral).
- Stochastic Oscillator: 12.74 (Neutral).
- Resistance and Support Levels: R1 – 150.93, R2 – 152.16, S1 – 146.302, S2 – 144.822.
- Overall Sentiment: Bearish, Market Direction: Sell.
- Trade suggestion: sell-146.302, target-144.822, stop: 147.250