Daily U.S. Session Watchlist: USD/JPY

National Financial Solution > Forex Trading > Daily U.S. Session Watchlist: USD/JPY

Will the dollar pick up where it left off last week and resume its rallies?

Here’s the textbook trend setup I’m looking at on USD/JPY.

Before moving on, ICYMI, I’ve compiled all of last week’s major headlines and price moves. Be sure to check that out before you place your first orders of the week!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • ECB head Lagarde’s speeches at 12:30 pm GMT and 2:15 pm GMT
  • FOMC Williams’ testimony at 7:00 pm GMT

What to Watch: USD/JPY

USD/JPY 4-hour Forex Chart
USD/JPY 1-hour Forex Chart

This pair retreated from the strong dollar surge last week, but the uptrend remains intact!

USD/JPY is still inside its ascending channel on the 1-hour chart and is testing support at the 61.8% Fib. A larger correction could reach the channel support closer to the 109.50 minor psychological mark.

Will buyers return soon?

The 100 SMA is safely above the 200 SMA to confirm that the rally is more likely to resume than to reverse while Stochastic is approaching the oversold region. This suggests that sellers could take a break and let buyers take over from here.

If that’s the case, USD/JPY could recover to the swing high or the channel resistance near the 111.00 major psychological handle.

There are no major reports due from the U.S. economy today, but it’s worth noting that FOMC official Williams has a speech coming up.

Upbeat remarks could remind traders that the Fed shifted to a slightly more hawkish stance with their dot plot forecasts, possibly spurring another leg higher for the Greenback.

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