Comprehensive USD/JPY Analysis for December 19, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/JPY for 19th December 2023. 

USD/JPY Key Takeaways 

• Exiting negative interest rates support the appreciation of the yen: If the Bank of Japan changes its negative interest rate policy at today’s interest rate decision, the USDJPY will face tremendous downward pressure against in 2024 when other major central banks are about to start cutting interest rates. 
• Short positions on the yen decrease: U.S. Commodity Futures Trading Commission (CFTC) data as of December 12, asset managers have gradually reduced their bearish bets on the yen in recent months as market sentiment began to gradually shift. 

USD/JPY Technical Analysis 

USD/JPY Daily Chart Insights

• Stochastic Oscillator: After the indicator showed a short signal at the 50 mid-line last week, it has now entered the oversold area and is about to form a reversal trend. To a certain extent, this implies that short-term bears currently have the upper hand, but it is still unclear whether the exchange rate continues to fall down. 
• 200-day moving average: Judging from the exchange rate trend in the past year, the 200-day moving average is the key level that determine the direction. Once the moving support level is broken, traders on the sidelines may enter the market, and the depreciation of the yen may be completely reversed. 

USD/JPY 1-hour Chart Analysis

• Stochastic oscillator: The indicator issued a short signal again yesterday, implying that the short-term exchange rate is still in a downward trend and cannot easily go long against the general trend. 
• Resistance range: The rebound trend since last Thursday has clearly formed a flag-shaped structure. The upper edge of the flag-shaped area and the lower edge of the downward channel line of the downward trend since December 11 jointly suppress the further rebound of the exchange rate. 
• 65-period moving average: Since the lower edge of the flag-shaped area is also near the 65-period moving average, USDJPY is to ease its downward trend. However, if it continues to fall below, the market price will look to 141. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 142.663, 
• Bullish Scenario: Bullish sentiment prevails above 142.663, first target 143.290, second target 143.797; 

• Bearish Outlook: In a bearish scenario below 142.663, first target 142.165, second target 141.538. 

Conclusion

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.  

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