USD/JPY needs to be watched 13/12/2023

The USD/JPY pair continues its downward trend, encountering strong resistance near 146.60 at the commencement of this week’s trading, resulting in sustained negative stability. The current movements indicate stability around 145.60.

From a technical perspective, the simple moving averages persist in applying downward pressure from above, supporting the daily bearish price trajectory. With daily trading remaining below the 146.50 resistance level, there is continued support for the prospect of the downward trend extending during today’s session.

Consequently, we anticipate the pair to sustain its decline towards 144.70. It is crucial to note that breaking below this level would amplify and accelerate the strength of the downward trend, clearing the path for a direct move towards 143.90, provided trading remains stable below 146.50.

A reminder that the consolidation of prices above 146.50 would lead to a temporary recovery for the pair, allowing it to visit 147.45.

Two warnings accompany this analysis: Firstly, the risk level is considered high, cautioning against potential challenges in the quality of transactions. Secondly, today brings the anticipation of high-impact economic data from the US, including inflation numbers via the “Producer Price Index,” a Federal Reserve Committee statement, a Federal Reserve press conference, interest rate decisions, and economic forecasts. This may lead to significant price fluctuations at the time of the news release. Exercise prudence in navigating these potentially dynamic market conditions.

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: 144.85	R1: 146.30
S2: 144.10	R2: 146.95
S3: 143.40	R3: 147.70