USDJPY Technical Analysis – Another wave of risk-off boosted the JPY

FundamentalOverviewThe USD remains mixedacross the board as there’s no real divergence in FX as the market continues toprice in more and more cuts for all the central banks and the generaluncertainty weighs on conviction.At the moment, the marketis more driven by the risk sentiment which changes very fast depending on thetariff headlines. Following yesterday’s selloff in the US stock markets, tradersincreased again the rate cuts expectations for the Fed with 105 bps of easingseen by year end and 55% chance of a rate cut at the May FOMC meeting. On the JPY side, thecurrency has been driven mainly by global events rather than domesticfundamentals. The global stock market selloff and the growth fears made themarket to scale back rate hikes expectations. Traders now see the BoJ remainingon hold for the rest of the year. The Japanese Yen continues to bounce around withchanges in the risk sentiment triggered by tariff headlines.USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY fell back to the lows in another bout of risk-off flows. Thesellers will now want to see the price breaking below the lows to increase thebearish bets into the 140.00 handle next. The buyers, on the other hand, willwant to see the price rising back above the 146.60 level to start targeting the148.60 level again.USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee more clearly the recent price action with the pair rolling over from the148.00 handle and accelerating the downward momentum as the risk-off sentimentincreased yesterday. The price is now bouncing around the lows. The buyers arelikely stepping in here with a defined risk below the low to target a rallyback into the 148.60 level. The sellers, on the other hand, will want to seethe price breaking lower to increase the bearish bets into new lows.USDJPY TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, there’snot much else we can add here as the buyers will look for a break above the146.60 level, while the sellers will target a break below the 144.55 low orwait for the rally into the 146.60 level to short at better prices. The redlines define the average daily range for today.UpcomingCatalystsToday the tariffs went into effect and thefocus will remain on potential news on negotiations. Tomorrow, we get the USCPI report and the latest US Jobless Claims figures, while on Friday weconclude the week with the US PPI and the University of Michigan ConsumerSentiment survey.Watch the video below This article was written by Giuseppe Dellamotta at www.forexlive.com.

FundamentalOverview The USD remains mixedacross the board as there’s no real divergence in FX as the market continues toprice in more and more cuts for all the central banks and the generaluncertainty weighs on conviction. At the moment, the marketis more driven by the risk sentiment which changes very fast depending on thetariff headlines. Following yesterday’s selloff in the US stock markets, tradersincreased again the rate cuts expectations for the Fed with 105 bps of easingseen by year end and 55% chance of a rate cut at the May FOMC meeting.

On the JPY side, thecurrency has been driven mainly by global events rather than domesticfundamentals. The global stock market selloff and the growth fears made themarket to scale back rate hikes expectations. Traders now see the BoJ remainingon hold for the rest of the year.

The Japanese Yen continues to bounce around withchanges in the risk sentiment triggered by tariff headlines. USDJPYTechnical Analysis – Daily Timeframe On the daily chart, we cansee that USDJPY fell back to the lows in another bout of risk-off flows. Thesellers will now want to see the price breaking below the lows to increase thebearish bets into the 140.

00 handle next. The buyers, on the other hand, willwant to see the price rising back above the 146.60 level to start targeting the148.

60 level again. USDJPY TechnicalAnalysis – 4 hour Timeframe On the 4 hour chart, we cansee more clearly the recent price action with the pair rolling over from the148.00 handle and accelerating the downward momentum as the risk-off sentimentincreased yesterday.

The price is now bouncing around the lows. The buyers arelikely stepping in here with a defined risk below the low to target a rallyback into the 148.60 level.

The sellers, on the other hand, will want to seethe price breaking lower to increase the bearish bets into new lows. USDJPY TechnicalAnalysis – 1 hour Timeframe On the 1 hour chart, there’snot much else we can add here as the buyers will look for a break above the146.60 level, while the sellers will target a break below the 144.

55 low orwait for the rally into the 146.60 level to short at better prices. The redlines define the average daily range for today.

UpcomingCatalysts Today the tariffs went into effect and thefocus will remain on potential news on negotiations. Tomorrow, we get the USCPI report and the latest US Jobless Claims figures, while on Friday weconclude the week with the US PPI and the University of Michigan ConsumerSentiment survey. Watch the video below.