Welcome to Extreme Investor Network! Today, we’re diving into the latest developments in the stock market, specifically focusing on the USD/JPY pairing and the potential impact on trading.
The recent data, including the jobs numbers released on Friday, have spurred traders to cautiously navigate the market, especially with the USD/JPY pairing edging closer to the ¥152.00 handle. There have been talks of potential intervention by officials to support the weakening yen, reminiscent of the last intervention seen in late 2022.
Looking at the charts, March saw an uptick of nearly +1.0%, continuing the positive trend from January and February, resulting in a Q1 gain of +7.4%. The breakthrough of resistance at ¥150.80 on the monthly chart opens up a bullish outlook towards channel resistance from the high of ¥125.85. Despite the favorable trend for buyers since 2012, the Relative Strength Index (RSI) signals potential negative divergence, hinting at a possible reversal or consolidation phase.
On the daily chart, keep an eye on resistance at ¥151.72 as a crucial level to monitor this week. Surpassing this hurdle paves the way for the USD/JPY pair to target the monthly channel resistance, potentially leading to a breakout towards the ¥153.00 mark. As the yen hits lows unseen since 1990, the stakes are high, and all eyes are on the Bank of Japan for their response to the evolving market dynamics.
Stay tuned to Extreme Investor Network for more insights and analysis on the stock market, trading strategies, and Wall Street trends. Our unique perspective and in-depth analysis will keep you informed and ahead of the curve in the world of investing. Happy trading!
