Fundamental Analysis
- Moody’s has downgraded the U.S. credit rating.
- The Trump administration is strongly opposing the move. Market attention now turns to tonight’s New York session.
USDJPY Technical Analysis
Analyzing the daily chart of USDJPY, the pair is forming a short-term upward channel and has hit the 90-day moving average. It has since pulled back from that level and has also broken below the 52-day moving average.
Just before the weekend, rating agency Moody’s announced a downgrade of the U.S. credit rating. While the U.S. administration has issued a sharp rebuttal, markets are now watching closely to see if this development will impact financial markets. With this move, all major rating agencies have now downgraded the U.S. rating. The last downgrade resulted in a significant drop in stock prices.
Caution is warranted in the New York session.
Intraday Trading Strategy (1-Hour Chart)
Analyzing the 1-hour chart, USDJPY has fallen below the 200-period moving average. The week opened with a bearish gap following the downgrade news. It’s not advisable to enter long positions prematurely.
The key focus is whether USDJPY can hold the support level around 145. However, the direction may ultimately be determined by tonight’s New York session. It may be wise to adopt a wait-and-see approach.
Sharp movements may also occur during the London session, so special caution is advised after 15:00 (JST).
Support & Resistance Levels to Watch:
145.86 JPY – Recent high
USDJPY Market Sentiment
- Sell: 46%,Buy: 54％
Key Economic Events Today
| Event | Time (JST) |
|---|---|
| Canada Holiday (Victoria Day) | – |
| EUR Consumer Price Index | 18：00 |
| U.S. Leading Economic Index | 23：00 |
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.