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Charts of the Week-USD/JPY–BOJ June Meeting Minutes, is it time to BUY?

Charts of the Week - Technical Analysis
- USD/JPY – BOJ June Meeting Minutes, and is it time to BUY?

USD/JPY – BOJ June Meeting Minutes, and is it time to BUY?

  • Resistance Zone: 144.00 to 145.00
  • Key Resistance: 140.42
  • Major Pivot Point: 134.40
  • Key Support Level: 130.97
  • Support Zone: 127.90 to 126.90
  • 200 Day SMA – Green Line
  • 50 Day SMA – Red Line
  • CBOE VIX – Volatility Index @ 30.19

Trade Insights – USD/JPY

The chart shows Viable long positions above the Pivot at 134.40 with the first target of Key Resistance Level @ 140.42 and after consolidation heading towards the Resistance Zone at 144.00 to 145.00.

Alternatively, Short positions below the Support Level at 130.97 if the pair drops out of the ascending parallel channel with the target Support Zone at 127.90 to 126.90 and then to head towards the next support level at 125.00.

USD/JPY Chart Analysis:  Directional bias - 2 Weeks 

USD/JPY chart shows that the Bulls are pushing the prices higher and there could be new highs to touch before we see any correction taking shape and a bullish move is more likely.  Bears would try to cap the rally at this stage but could be in for a surprise if prices do not fall below the 134 Pivot point. Using the Fibonacci extension indicator on the chart it appears that the Key Resistance Level is at 140.42. And the Resistance Zone is between 144.00 to 145.00.

The Pivot on the chart is at 134.40. And it could serve as support if the prices weaken from here. The prices have been moving higher in an ascending channel and trading above the middle range of the channel. We could see the prices hitting and moving above briefly the upper limit of the channel towards the Key Resistance Level at 140.42. Moving above this level could push the prices higher toward the 144.00 to 145.00 Resistance Zone.

The pair is trading above the 50 Day SMA and well above the 200 Day SMA and the lines are moving higher. The Stochastic Oscillator is also moving higher and has already moved above 70 points. Together the indicator indicates the Bullish Bias of the Market. The RSI indicator is also just under 70 Points and could move above the overbought zone.

Fundamental Overview: 

The BOJ and Fed Reserve are on a completely different path and this has resulted in weakening the currency and a multi-year low for the Yen.  In the recent BOJ June meeting minutes published; members have agreed to take additional easing steps if need be. The BOJ has so far taken a Dovish stance on the interest rates and this stance by the Central Bank shows a positive or bullish outlook for the JPY. On the Dollar front, the Index DXY is at 104.715. Somewhat recovering in the current session and moving upwards towards 105.00.

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The information provided is of a general nature and is not intended to be personalised financial advice. The information provided is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.

Trading in Rockfort Markets derivative products may not be suitable for everyone as derivative products may be considered as high risk. Please ensure that you understand the risks involved. A Product Disclosure Statement can be obtained here and should be considered before trading with us.

Vishal, R.

June 22, 2022

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