Yen still under depreciation pressure as Bank of Japan takes the stage  

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDJPY for OCT 31, 2024. 

USDJPY Analysis Key Takeaways  

• Strong ADP data: The United States released the October “small non-farm” data, and the number of ADP employment in October was 233,000, the largest increase since July 2023. At the same time, data from the US Bureau of Economic Analysis showed that the initial value of the annualized quarterly rate of the core PCE price index in the third quarter of the United States rose by 2.2%, roughly in line with the Fed’s target. 

• BOJ is on the scene: The Bank of Japan will announce its latest interest rate decision and the latest economic outlook report on Thursday. The market expects the Bank of Japan to keep short-term interest rates unchanged while gradually reducing the scale of bond purchases. If the Bank of Japan does not reveal any forward guidance on rate hikes this time, the yen may fall into a depreciation trend again. 

USDJPY Technical Analysis 

USDJPY Daily Chart Insights 

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

• Stochastic oscillator: The indicator is about to send a bullish signal again after leaving the overbought area, but the fast and slow lines are entangled and oscillating, suggesting that the current long and short trends are unclear. At the same time, the indicator and the exchange rate form a top divergence pattern and be alert that the exchange rate will still fluctuate and adjust in the short term. 

• Upward channel: The exchange rate is in the upward channel, the upper edge hinders the acceleration of the exchange rate, and the lower edge ensures that the exchange rate is still in an upward trend. In theory, a breakthrough in either direction of the upper and lower edges will determine the trend direction of the yen within the day. 

USDJPY 1-hour Chart Analysis 

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

• MACD: The column begins to expand, and the upper crossing of the slow line sends a bullish signal. Based on the oscillation logic of the daily cycle, there is an upward trend in the short-term Asian session, but there is a certain selling pressure on the upper resistance. 

• Resistance area: The area where the USD/JPY gaped on Monday belongs to the fair value gap, which is a strong support area. If the exchange rate falls below this resistance price, the USD/JPY is very likely to enter a downward trend. On the contrary, if the exchange rate breaks through the upper downward trend line, there is still momentum to rise in the short term. 

USDJPY Pivot Indicator 

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

• According to the trading central in Ultima Markets APP, the central price of the day is established at 153.60, 

• Bullish Scenario: Bullish sentiment prevails above 153.60, first target 153.85, second target 154.25; 

• Bearish Outlook: In a bearish scenario below 153.60, first target 153.05, second target 152.80. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. 

Stay tuned for more updates and analyses from our team of experts at Ultima Markets.  

—– 

Legal Documents 

Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius. 

Copyright © 2024 Ultima Markets Ltd. All rights reserved. 

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.