empty
16.06.2022 03:25 PM
Technical analysis and forecast for USD/JPY on June 16, 2022

In today's two reviews of the author on the euro/dollar and the pound/dollar, the results of yesterday's events related to the Fed have already been summed up, so I don't see any point in repeating myself. However, before proceeding to the consideration of the daily price chart for the dollar/yen pair, let me remind you that yesterday's decision of the US Federal Reserve System (FRS) exceeded the expectations of most analysts. Let me remind you that the consensus forecast assumed that following the results of its June meeting, the Fed would raise the federal funds rate by 50 basis points, but the rate was raised by 75 bps. Looking at the market reaction that led to the US dollar sell-off, the only thing that has to be assumed is that the previous and very strong growth of the US currency, especially paired with the Japanese yen, provided for this scenario. And now pay attention to the daily price chart.

Daily

This image is no longer relevant

As a result of yesterday's decline, which occurred despite a more significant increase in the federal funds rate than expected, a reversal pattern of the "Bearish Absorption" candlestick analysis appeared on the USD/JPY daily chart. Let me remind you that this model consists of two candles, the last (red) of which absorbed the body of the previous bullish candle. As a result, at today's trading, the pair is trying to continue implementing the bearish scenario and is still trading with a slight decrease near the strong technical level of 133.00. As can be seen on the daily chart, the red Tenkan line of the Ichimoku indicator provides very significant support to the price. It is not for nothing that after trying to go down this line, the current daily candle already has a fairly significant lower shadow, that is, the quote bounces up from the Tenkan line. According to the Fibonacci tool grid, stretched for global growth of 114.67-135.60, it would be quite logical and technically competent to roll back to the first level of correction from this movement of 23.6 fibo. In addition, as can be seen on this chart, there is a previously broken and far from the weak resistance level of 131.32, and a little lower is the blue Kijun line of the Ichimoku indicator. All this taken together can provide USD/JPY with very strong support and reverse the course in the north direction again. Thus, I suggest not to rush right here and now, but to wait for the decline in the price zone of the expected strong support of 131.35-130.65 and plan purchases from here, that is, to open positions on the current and very strong upward trend. The confirmation signal for opening long positions on the dollar/yen pair will be the appearance of bullish reversal patterns of candle analysis on this or smaller time intervals that will appear in the selected price area. If the USD/JPY pair confidently returns to the previously broken resistance level of 131.32, it will be time to think about a trend change or at least a deeper corrective pullback.

Ivan Aleksandrov,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

Forecast for EUR/USD on July 31, 2025

On Wednesday, the EUR/USD pair continued its decline after rebounding from the 100.0% Fibonacci retracement level at 1.1574. By the end of the day, the pair closed below the 76.4%

Samir Klishi 13:23 2025-07-31 UTC+2

Forecast for GBP/USD on July 31, 2025

On the hourly chart, GBP/USD rebounded on Wednesday from the resistance zone of 1.3357–1.3371, reversed in favor of the U.S. dollar, and fell below the 127.2% Fibonacci retracement level

Samir Klishi 13:21 2025-07-31 UTC+2

EUR/USD. Indicator Analysis on July 31, 2025

On Wednesday, the pair moved downward, reaching the 161.8% level at 1.1413 (red dotted line), and closed the daily candle at 1.1404. Today, the price is expected to begin

Stefan Doll 13:09 2025-07-31 UTC+2

Forex forecast 31/07/2025: EUR/USD, USD/JPY, GBP/USD, SP500, Ethereum and Bitcoin

Useful links: My other articles are available in this section InstaForex course for beginners Popular Analytics Open trading account Important: The begginers in forex trading need to be very careful

Sebastian Seliga 10:02 2025-07-31 UTC+2

The Nasdaq 100 Index will attempt to test its nearest resistance level today, Thursday, July 31, 2025.

Nasdaq 100 Index – Thursday, July 31, 2025. With the Golden Cross of the 50-day (EMA)50 and (EMA)200 and the position of RSI (14)in an Extreme Bullish condition, the Nasdaq

Arief Makmur 08:03 2025-07-31 UTC+2

The potential for weakness in EUR/GBP remains open today, Thursday, July 31, 2025.

EUR/GBP – Thursday, July 31, 2025. With the 50-day moving average (EMA) condition below the 200-day moving average (EMA) and supported by the appearance of "Hidden Divergence" from

Arief Makmur 08:02 2025-07-31 UTC+2

Trading Signals for EUR/USD for July 31 - August 02, 2025: buy above 1.1400 (21 SMA - 6/8 Murray)

If the euro continues its downtrend, it could reach the 5/8 Murray level at 1.1352. This level could provide an opportunity for a technical rebound, as the indicators are showing

Dimitrios Zappas 07:26 2025-07-31 UTC+2

Trading Signals for GOLD (XAU/USD) for July 31 - August 02, 2025: buy above $3,281 (21 SMA - 4/8 Murray)

Early in the European session, gold is trading around 3,296, bouncing after reaching the area of 3,268, a key level that gave it a strong technical rebound. We now expect

Dimitrios Zappas 07:25 2025-07-31 UTC+2

Trading Signals for BITCOIN for July 31 - August 2, 2025: sell below $118,750 (6/8 Murray - 21 SMA)

If Bitcoin consolidates above $119,000 in the coming days, it could signal a bullish move. So, we believe it could reach the 7/8 Murray level at 121,878 and even

Dimitrios Zappas 07:23 2025-07-31 UTC+2

EUR/USD Forecast for July 31, 2025

Following yesterday's FOMC meeting, the current rate was left unchanged, and the markets received a clear signal — the rate may also remain unchanged at the September meeting. Now, markets

Laurie Bailey 05:10 2025-07-31 UTC+2
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.