Weekly DAO | Currencies to watch next week (First week of September 2026)
Understanding Market Environment through DAO
Hello. Thank you again for reading Weekly DAO this week.
As August ends and September arrives, the heat lingers in Japan, but in the world of markets, participants are gradually returning from the summer break, and attention tends to focus on factors surrounding monetary policy and exchange rates.
Recently, moves around the yen have been especially noteworthy. Japan conducted a large-scale yen-buying intervention from the end of July to August, and data released on August 28 revealed that the intervention amount from July 30 to August 26 reached 15.4 trillion yen.
In the United States, speculation of rate hikes strengthened following remarks by the Fed chair, causing the dollar and U.S. Treasury yields to rise. Movements were also seen in stocks, Bitcoin, and gold.
Seeing these headlines makes you want to think about the future—whether the yen will appreciate next week or what will happen to the USD/JPY.
But what this week's Weekly DAO emphasizes isnot predictions, but current situation analysis.
“Which time frame is currently pointing up?”
“Where is the direction diverging?”
“How far is the current price from the moving average?”
Focusing on these three points, we will organize the current market environment in DAO.
DAO is an indicator I personally use in actual trading.
This article, including all, is a personal market environment sense and is not intended as investment advice.
This Week's DAO One Point
“The Relative Power of Market Participants as Seen by DAO”
When forming market environment awareness with DAO, you don’t simply look at “EMA20 is rising, so buy.”
What matters is,whether multiple timeframes are aligned in the same direction.
For example, in USDJPY this time, all MN1, W1, D1, H4, and H1 are rising.
This means the buying pressure aligns from long-term to short-term.
On the other hand, AUDJPY has MN1, W1, D1, H4 rising, but H1 is falling.
In this case, although the higher timeframes show a bullish advantage, the short-term timeframe also shows selling forces.
In other words, with DAO, you can look not only at
“whether it’s a buy or a sell”
“which specific timeframes are exerting strength in which direction”
.
This is the “market participants’ power balance” as seen in DAO.
Top 3 Currencies to Watch Next Week
3rd place: AUDJPY
MN1, W1, D1, and H4 are rising, and the direction on the higher timeframes is relatively clear. However, H1 is falling. H4 EMA20 and H1 EMA20 are nearby, making it easier to observe short-term battles. The long-term bullish direction and the short-term bearish direction coexist, making it a candidate to watch for power dynamics.
2nd place: CADJPY
MN1, W1, D1, H4 are rising, with H1 only falling. In particular, H4 EMA20 is at 115.006 and H1 EMA20 at 115.125, with EMA20s aligning across multiple timeframes. Since the directions of the higher timeframe and the shorter timeframe differ, this is a pair where it’s easy to assess which side is stronger near the EMA20.
1st place: USDJPY