Strong Dollar-Yen Buy-the-Dip Strategy Targeting Rebound at 150.8
This is the USD/JPY 15-minute chart
151.185 Break Long
150.890 Break Short (rebound long possible)
The dollar is strong, isn’t it~
Dollar Index
Even on the 5-minute USD/JPY chart, it’s a scalping setup aiming to break out of the range
Here, I’d like to wait calmly for a pullback
Looking at the 4-hour chart
Supported by the 20 MA and overlapping with the support line
Around 149.30?
Looking at a shorter time frame, the 1-hour chart
Again, supported by the 20 MA, around 150.88?
Still anticipating a rebound at 150.89
There is an ascending flag forming, but if it breaks, there is also a risk of a sharp drop
For reference
Concerns about ruling party losing the majority causing stock prices to fall; USD/JPY reacts to U.S. interest rates
With the ruling parties (Liberal Democratic Party and Komeito) likely to fall short of a majority, the Nikkei opened lower and continued selling
The “buy the election” anomaly seems to be collapsing
Meanwhile, USD/JPY initially fell along with the Nikkei
Touching 150.50 yen
However
With U.S. 10-year yields reaching 4.2%,
there is strong buying on dips, pushing back up to around 151.10 yen
U.S. 10-year Treasury, 15-minute chart
The Nikkei and USD/JPY are moving in opposite directions from before
and the usual rules no longer apply
to this market
In the first place, even as rate cuts are anticipated,
reaching above 4% in U.S. 10-year yields is hard to believe,
and if it were to reach 4.2%, it would once again
be a surprise at the strength of the U.S. economy
Nevertheless, long positions from here
should be taken cautiously and with a short-term focus
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