I want to wait for a pullback near 157.8 yen per dollar
This is the USD/JPY 15-minute chart
A decline after climbing into the 158 yen range
Will there be a pullback up to the orange line at the 0.382 Fibonacci level?
The green line is the half retracement
If a flag forms and it rises, the orange circle would be the entry point
Looking at the 4-hour chart
The previous high area around 157.703–157.794 acts as a resistance
If it breaks above the high of 155.088 and rises
it may aim for the pivot line at 158.511
Santa Claus Rally
Yesterday, the UK market was closed for Boxing Day
The US market traded as usual
On the 25th, Ueda's speech to Keidanren was
extremely neutral in content.
After the BOJ policy meeting on the 19th, the USD/JPY surged
but there were no words to halt the yen’s weakness
During year-end and New Year, Japan will be closed,
and tightening comments or market intervention to curb yen weakness
seem unlikely. With the US in transition to the Trump administration,
and with Yellen indicating possible intervention,
we cannot know how the Trump administration would react
or what the response would be
from them.
Therefore, the year-end and New Year market may see the USD/JPY
rise further.
Many expect a test of 160 yen while keeping long positions
as a possibility.
U.S. initial jobless claims unexpectedly rose to a multi-year high,
while continuing claims remained elevated at around 3-year highs
the market reacted and the USD/JPY rose
the market tends to bake in favorable information
On the other hand
“The BOJ’s assessment shows that rate hikes won’t push debt into default even at 2% policy rate.”
There was no reaction to this
However,
as the USD/JPY pulled back from its elevated level,
there may be a scenario where some reason is given to push it down
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