USDJPY Analysis: Hike expectations boost the yen

Fundamental Analysis of USDJPYUSDJPY Key Takeaways

• US data: US ISM non-manufacturing PMI for January was 52.8, significantly lower than the expected 54.3 and the previous value of 54.1. US ADP employment in January was 183,000, the highest since October last year, and the market expected 150,000.
• Rate hike expectations support the yen: The yen rebounded against all major currencies after better-than-expected wage data in Japan supported the Bank of Japan’s case for continued rate hikes. Bank of Japan board member Naoki Tamura said today that the Bank of Japan must raise interest rates to at least 1% in the second half of fiscal 2025, and the risk of rising prices will increase.

Technical Analysis of USDJPY Daily and Hourly ChartsUSDJPY Daily Chart Insights

(USDJPY Daily Price Chart, Source: Ultima Markets MT4)

• Stochastic oscillator: After the indicator lingered below the 50 median line for a period of time, it sent out a short signal again. The clear downward trend suggests that the short-term short force has the upper hand, and investors should pay attention to the appreciation of the yen.
• Support price: Yesterday, USD/JPY quickly fell to the green 200-day MA. Theoretically, there is a probability of rebound in the Asian session. Then the next target should be 151.171.

USDJPY 1-hour Chart Analysis

(USDJPY H1 Price Chart, Source: Ultima Markets MT4)

• Stochastic oscillator: Yesterday, the indicator diverged from the bottom twice in a row. The exchange rate rebounded during the Asian session today, but the indicator still did not rise above the 50 median line. Investors need to be alert to the possibility of continued rebound during the Asian session.
• Rebound TARGET: If USD/JPY continues to rebound, the first target will be the purple 13-period MA. If the exchange rate continues to break through the key resistance level of 152.761, the second target of the yen rebound will be the black 65-period MA.

Pivot Indicator Insights for USDJPY

(USDJPY M30 Price Chart, Source: Ultima Markets APP)

• According to Pivot Indicator in Ultima Markets APP, the central price of the day is established at 153.10,
• Bullish Scenario: Bullish sentiment prevails above 153.10, first target 153.65, second target 154.20;
• Bearish Outlook: In a bearish scenario below 153.10, first target 151.70, second target 151.30.

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