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USDJPY 1 HOUR CHAPT – Key level cited
As I noted earlier, support below 155 caught my eye but the extent of the bounce is a surprise. Key level is 156.75, then a void of key levels until above 158 (not a forecast but an observation).
IN any case, upside will be contained unless 156.75 is firmly taken out.
Using my platform as a HEATMAP shows
A weaker USD but unless EURUSD can establish 1.05+ moves will lose steam. What also caught my eye ia USDJPY back above 155 after again failing to hold on another trade below it following the expected BoJ rate hike,
With all the talk about Trump comments about lower interest rates, 10-year yield is close to unchanged..
USDJPY 4 HOUR CHART –   Waiting!
The wait is on for the BoJ’s expected rate hike and price action suggests it is already baked in the cake.
If you take 155-158 as a range then 156.50 will set the tone ahead of the BoJ.
Note the JPY was the underperformer Wednesday, both vs the dollar and on its crosses, most notably EURJPY..
EURJPY 4 HOUR CHART – TESTS RESISTANCE
Credit again to The Amazing Trader for highlighting this key resistance, which was the start of the move down to the 159.65 low.
Even if you do not trade EURJPY, it pays to keep an eye on it when you sewe the JPY move in the opposite direction of the EUR vs the dollar. ‘
The high in EURJPY coincided with the top in EURUSD at 1,0457.
Using my platform as a HEATMAP shows
The dollar is trading a touch softer except vs the JPY despite the BoJ likely to raise rates this week and the BOE and ECB likely to cut.’ One clue may have been another Trump taro\iff threat was ignored.
So, looking for a reason for the recent softer USD, I came across this in a Reuters article..
The dollar looks stretched on positioning, sentiment and valuation metrics – hedge funds last week held the biggest net long dollar position in nine years; ‘long dollar’ is one of investors’ most crowded trades, according to Bank of America’s latest fund manager survey; and Citi analysts reckon the currency is overvalued by 3%.
Using my platform as a HEATMAP shows
A market on hold waiting for the inauguration of President Trump and a slew of executive orders to follow.
For the FX market, the focus will be on anything related to tariffs but I have not seen any talk of it in the press.
The heatmap, meanwhile, shows the EURUSD as an outperformer with the GBP and JPY lagging out of respective EUR crosses.
The main action has been in cryptos with BTCUSD surging higher to a new record high (marginally so far). The $Trump memecoin has been the talk of the press but I will leave my opinion on something that has no intrinsic value for another time.
Otherwise US markets are closed today, liquidity is thin and it is now just a wait until the new Trump era begins.
Dollar coming off highs /slipping (except USDJPY (HIGHER AS BOND YIELDS TICK UP)) after concilatory remarks from Trump and Xi
Source:
USDJPY 4 HOUR CHART –  Tests 155
The main action remains in USDJPY and JPY crosses
155 remains the pivotal level on the downside (low 154.97) and a break of 156.35 would be needed to postpone the risk.
For FIBO lovers, here are retracement levels for 158/88-154.97 using our Fibonacci Calculator
Using my platform as a HEATMAP shows
A market that appears to be on hold ahead of Monday’s US holiday and the inauguration of President Trump and a s;ew of executive orders.
Bpnd yields remain soft after yesterday’s dip
USD is off earlier highs and USDJPY Bbounced from a 154.97 low
Right now it feels like a Friday market will dominate unless any key levels are taken out.
