USDJPY fell at the market open on Monday, September 11th.
The yen soared early in the trading week after Bank of Japan Governor Kazuo Ueda signaled the possibility of the first interest rate hike since 2007.
Due to the strong yen, Intraday low is 145.904 For US dollar yen.
The pair closed on Monday in a zone that could serve as a second flag demand zone base amid a rally from its lows. 141.53 Printed on August 7, 2023.
This closing price is also below an important level. 261.8 Fibonacci level If you draw the weekly chart from the high price of January 6th at 134.772 to the low price of January 16th, 2023 at 127.224.
The important US Consumer Price Index is scheduled to be released tomorrow (Wednesday, September 13th), and all eyes are on the USD side of USDJPY.
Both bears and bulls will be looking for price action near key levels as an indicator of the direction of USDJPY’s next impulse.
The Bulls will look to close Monday’s gap by rallying around flag resistance at 147.769.
However, they will have to contend with the psychologically important Fibonacci level of 261.8. 146.985.
Bullish flag breakout I was able to see the test of 148.850 The region resisted the USDJPY bull market from late October to early November 2022.
Further to the north is a potential resistance zone in the upward-sloping channel drawn from January 5, 2023.
USDJPY bears on the other hand, strong below Current bullish flag support, and psychologically important support is also below 146.00 line.
Such price movements may indicate a return to that price movement. 50-EMA This is more than 2,600 points off its current price at the time of writing.
After all, much of USDJPY’s immediate fate hinges on tomorrow’s US inflation data release.
- a CPI higher than expected (Consumer Price Index) This strengthens bets that the Fed will raise rates one more time by the end of 2023, pushing the US dollar higher and potentially Send USDJPY higher.
- however, CPI is lower than expected This strengthens expectations that the Fed will indeed complete its rate hike, weakening the US dollar and potentially Drag USDJPY down.
