USDJPY Market Analysis – Trade the Dips Using Ichimoku

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FxNews—The USDJPY currency pair, representing the US Dollar against the Japanese Yen, shows some interesting movements in today’s trading session. It’s bouncing back from the top edge of a downward trend channel. This happens within a pattern known as the Ichimoku Cloud, which usually indicates a period of sideways movement or a “flat” market.

USDJPY Market Analysis – Trade the Dips Using Ichimoku

Our technical analysis suggests that we might see the price touch the bottom edge of this Cloud around 148.30 before it starts to climb again, potentially reaching as high as 151.05. A promising sign that this upward movement is happening would be if the price bounces off the bottom edge of an upward trend channel.

USDJPY Market Analysis - Trade the Dips Using Ichimoku

USDJPY Market Analysis – Trade the Dips Using Ichimoku

However, this prediction could be proven wrong if the price breaks through the bottom edge of the Cloud and settles below 148.3. If that happens, it could mean the price will continue to drop, possibly down to 147.20.

On the other hand, if the price breaks through the top edge of a downward trend channel and settles above 149.75, it would confirm that an upward trend is indeed underway. So, in this USDJPY market analysis, several key levels exist to watch for signs of where the USDJPY might be headed.

  • 9 October 2023