Caution Advised in Evaluating USD/JPY Movements 8/11/2023

The recent trading sessions witnessed a mixed atmosphere, with attempts at positivity being met with strong resistance. In our previous report, we highlighted a formidable hurdle at 150.55 that could exert downward pressure on the USD/JPY pair. Currently, the pair hovers around this resistant level, attempting to breach it.

Analyzing the technical aspects, the 14-day Momentum indicator continues to emit positive signals, indicating potential upward momentum. Moreover, the pair maintains stability above 150.00, bolstering the possibility of an ascent. However, the Stochastic indicator suggests potential saturation in intraday buying, adding an element of caution. The pair remains near the 150.50 resistance level.

Given these conflicting technical signals, it is prudent to observe the pair’s behavior to anticipate the market’s direction. Several scenarios may unfold:

1. Break Above 150.55: A successful close of the hourly candle above 150.55 enhances the likelihood of an upward movement, targeting 150.80 and 151.20, respectively.
   
2. Failure to Penetrate 150.55: If the pair fails to breach the resistance and drops below 150.00, a bearish correction might ensue. Downside targets in this scenario include 149.60 and 149.30, respectively.

It is crucial to exercise caution due to the high-impact press talks anticipated today, notably “Federal Reserve Governor Jerome Powell’s talk” and “BoE Governor’s talk.” These events could lead to heightened price fluctuations and increased market volatility.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 150.05	R1: 150.80
S2: 149.60	R2: 151.20
S3: 149.25	R3: 151.60