Dollar-Yen Exchange Technical Analysis: Key Points to Watch
Daily Chart Analysis
Resistance and Support Levels
Resistance levels to watch on the daily chart are around 148.30 yen, 148.53 yen, and 148.95 yen, while support levels are near 148.00 yen and between 147.70 yen and 147.65 yen.
Analysis of the 4-Hour Chart
Shifting our focus to the 4-hour chart, both the Bollinger Bands and moving averages are trending upwards, signaling a sustained buying momentum. As of this morning, there's observed support from 148.00 yen to near the 10EMA at 147.95 yen, backing up a 'neutral to bullish' viewpoint. If the price rises above 148.25 yen, targeting 148.50 yen could be likely. A drop below the 10EMA would warn of a potential decline to the 147.70 to 147.65 yen range and possibly to the middle line near 147.50 yen.
Insights from the 60-minute Chart
Examining the 60-minute chart reveals a Bollinger Band squeeze, hinting at a possible 'sideways range' formation. Considering the overall bullish trend, a downturn that sets higher lows could pave the way for new highs. The upper boundary of the range is between 148.30 yen to 148.50-148.53 yen, with the lower boundary extending from 147.70 yen to 147.60 yen. Also, keep an eye on the middle line around 148.00 yen and a potential higher low at 147.85 yen.
Tokyo Session Strategy
The Tokyo Session Strategy suggests that the potent U.S. job market, highlighted by a larger-than-expected decrease in initial jobless claims, has pushed up U.S. bond yields, contributing to an uptrend in Dollar-Yen. This trend may persist if dollar buying remains prevalent, with sights set on the 150 yen mark.
Today's Dollar-Yen Forecast
As for today's Dollar-Yen forecast, the dollar fundamentally remains robust. Although technically, the daily chart indicates the potential for a sideways range pattern during Tokyo market hours following yesterday's unextended correction. The basic sentiment stays 'neutral to bullish,' with a leaning towards continued dollar buying predominance. There has been a dip as of 8 o'clock, so the key points are where stability will resume and where buying the dips will start to prevail. Will it find support around 148.00 yen? Should it drop below, 147.85 yen is an area where we might expect a higher low formation. Absence of a bounce could mean finding support at the lower end of the range near 147.70 or 147.60 yen. If the pair declines below 147.60 yen, potential support from the 4-hour chart's mean line around 147.50 to 147.45 yen could be significant. On the rebound, surpassing 148.15 yen may lead to an upward movement towards 148.25 yen and 148.35 yen. Crossing these thresholds could target the range between 148.50 yen to 148.53 yen, and should the high be updated, we might witness a gradual climb towards about 148.75 to 148.80 yen, and close to 148.90 yen up to 149.00-149.05 yen. Lastly, considering it's Friday and the weekend is nearing, with no significant selling pressures, a high close today, followed by support found in the late 147 yen range next week, could well set the stage for a potential move towards 150 yen. The question remains whether we will see a 'high cut' on the weekly chart or not.
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