CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Chart of the day - USDJPY (11.12.2023)

08:43 11 December 2023

Japanese yen is the worst performing G10 currency at the start of a new week. Pullback on the JPY market comes after media reports suggested that Bank of Japan may not be as hawkish as it was recently thought and, in turn, a recent JPY rally may have been overdone. First, Reuters came out with a report suggesting that Bank of Japan Governor Ueda is unwilling to proving markets with clear hints on the timing of a policy shift. Later, Bloomberg reported that Bank of Japan sees little need to end negative rate this year. This means that BoJ may decide to keep rates unchanged when it meets next week. However, it was also said that Japanese central bankers will consider all the available data when making decision, as well as include financial conditions on the markets up to last minute ahead of the meeting.

Those media reports have a clear dovish tone to them, and markets are reacting to it. USDJPY is up 0.8% on the day and trades above 146.00 handle. Taking a look at D1 chart, we can see that the pair bounced off the lower limit of the Overbalance structure at 143.40 last week, hinting that an uptrend is still in play, and launched a recovery move later on. Moving to the lower timeframe (H4, next chart) we can see that today's advance was halted at a key medium-term resistance zone - 146.50 area, marked with previous price reactions, downward trend line as well as 50-period moving average (green line). A break above this area would be a strong hint that downward correction is over and a move back towards recent highs may be looming next.

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app


 

USDJPY at D1 interval. Source: xStation5

USDJPY at H4 interval. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 935 000 investors from around the world