USD/JPY to be monitored 1/12/2023

The dollar/yen pair exhibited positive movements yesterday after establishing a strong support base at $147.10. It successfully breached the $147.75 resistance, suggesting a potential temporary rise with the aim of retesting $148.40 before initiating a new decline. The pair recorded its highest level at $148.52.

From a technical perspective, the pair encountered robust resistance around $148.40. The Stochastic indicator is now providing negative signals, gradually losing upward momentum, indicating a possible return to the official downward trend.

Opportunities to continue the downward trend remain valid, targeting $147.10. It’s crucial to monitor the pair’s ability to break this level, as success in doing so would strengthen the downward corrective trend, with the next target at $146.15.

It’s noteworthy that a consolidation above $148.50 might prompt the pair to attempt an upward trend, with an initial target of $148.80.

Caution: The risk level may be high.

Caution: High-impact economic data is expected from the American economy today, including the Manufacturing Purchasing Managers’ Index issued by the ISM and a press talk by the Chairman of the Federal Reserve. Consequently, there may be high price volatility at the time of news release.

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: 147.10	R1: 148.80
S2: 146.15	R2: 149.50
S3: 145.50	R3: 150.45