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Instrument: USDJPY
Bullish Preference:
A buy position is envisaged if the price trades above 146.139 With take profit at 146.339
Bearish Preference:
A sell position is envisaged if the price trades below 145.667 with Take profit at 145.405
Fundamentals:
No major Fundamentals
Comment:
Bank of Japan Governor Kazuo Ueda said that he and prime minister Fumio Kishida held talks on Tuesday on economic developments but did not discuss recent volatile currency moves. The discussions took place in the wake of the dollar’s recent ascent above 145 yen, a level that in September 2022 triggered Japan’s first yen-buying operation since 1998. Technically, USD/JPY looks overbought as it tests a crucial barrier around 145.00-145.10, including the June high and the end-October 2022 low. The 14-day Relative Strength Index appears to be rolling over from the overbought territory – as the accompanying chart shows, on previous occasions such a rollover was associated with a retreat in USD/JPY. Still, for any retreat to be meaningful, the pair needs to break below immediate support at the mid-August low of 145.00. Such a break would be a warning sign for the five-week uptrend.
Analysis: SCRUM Team
