Comprehensive USD/JPY Analysis for December 26, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/JPY for 26th December 2023. 

USD/JPY Key Takeaways 

• Unemployment rate: The unemployment rate of Japan in November remained unchanged at 2.5%, which had little impact on the market. Employment was unchanged and inflation earlier showed clear signs of cooling. Judging from the superposition of the two, the Bank of Japan is correct in its view that price growth will slow down, and the Bank of Japan has a long road to normalize its monetary policy. 

• Japan publishes summary of opinions: The Bank of Japan will release a summary of opinions on Wednesday. The Bank of Japan is still unwilling to change interest rates in its latest resolution. If there is no extra forward guidance on currency normalization, the yen may remain under pressure. 

USD/JPY Technical Analysis 

USD/JPY Daily Chart Insights

• Stochastic Oscillator: The indicator once again showed a short signal, suggesting that the US dollar against the yen may continue to decline. 
• Price Action: The exchange rate showed a doji bar, and the closing price was lower than the 240-day moving average. If the exchange rate falls below the low, there is a certain probability that the decline will accelerate today. 

USD/JPY 1-hour Chart Analysis

• Stochastic Oscillator: The indicator sends a short signal, suggesting that the current short forces have the upper hand. However, it has not fallen below the 50 mid-line, and the market price may still continue to consolidate or even rise again. 
• Flag-shaped area: The exchange rate currently forms a rising flag-shaped pattern, which is usually an corrective wave in a downward trend. After the market price falls below the channel line, you can focus on short selling opportunities. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 142.299, 
• Bullish Scenario: Bullish sentiment prevails above 142.299, first target 142.728, second target 143.117; 
• Bearish Outlook: In a bearish scenario below 142.299, first target 141.950, second target 141.505. 

Conclusion