USDJPY Technical Analysis – Lack of Catalysts Keeps Trend Intact

Basic overview

The lack of catalysts recently ensured that the US dollar was supported across the board despite the slowing momentum. The market could now look forward to the first few weeks of November when we get key economic data, the FOMC decision and the US elections.

There is also a good argument that markets are already preparing for a Trump victory and that this should be reflected in USD strength as it is expected to appreciate on higher growth and lower rate cut expectations. However, not all markets agreed with this view.

USDJPY Technical Analysis – Daily Timeframe

USDJPY Daily

On the daily chart, we can see that USDJPY is hovering around the 149.40 level, with the 150.00 level acting as a ceiling. Buyers want the price to break above the 150.00 level to target the 152.00 level next, while the sellers are looking for a break below the 149.00 level to set themselves up for a pullback to position at the 147.22 level.

USDJPY Technical Analysis – 4 Hour Timeframe

USDJPY 4 hours

On the 4-hour chart, we can see the recent price action more clearly, showing a slowdown in bullish momentum ahead of the 150.00 level. We can’t glean much from this chart as the choppy price action around the 149.40 level makes it difficult to find clear levels to lean on.

Technical Analysis USDJPY – 1 Hour Timeframe

USDJPY 1 hour

On the 1-hour chart, we can see that the price fell below the minor uptrend line overnight but eventually recovered above it. We now have a countertrend line that sellers will likely look at to position for a decline to new lows.

Buyers, on the other hand, want the price to break higher to start a rally to the 152.00 level. The red lines define the average daily range for today.

Upcoming catalysts

This week is pretty empty on the data front with market-moving releases scheduled for the second half of the week. On Thursday we get the flash PMIs for Japan and the US as well as the US jobless claims numbers. On Friday we close out the week with the CPI report for Tokyo.