Trading Signal: USDJPY Breaks Support: Market Reaction Expected

Technical Analysis:

• USDJPY is currently retesting a key horizontal support level at 151.1990.
• This support level has been tested 4 times in the recent past, indicating a strong level of support.
• There is a possibility of a bounce off the support level, similar to previous occurrences.
• However, after multiple tests, there is a potential for a new trend to emerge.

Trading Strategy:

• Traders can consider going long if USDJPY successfully bounces off the support level.
• Alternatively, a break below the support level could signal a trend reversal, prompting traders to go short.
• Stop-loss orders can be placed below the support level to manage risk effectively.

Technical Indicators:

• Key technical indicators to monitor include moving averages, RSI, and MACD.
• These indicators can provide insights into the strength of the support level and potential trend direction.

Correlated Assets:

• USDJPY is often correlated with US Dollar Index (DXY), Nikkei 225, and US Treasury Yields.
• Traders should keep an eye on these assets for additional confirmation of USDJPY’s price movements.

Economic Calendar Events:

• Key economic events that can impact USDJPY include US GDP releases, FOMC meetings, and Japanese economic data.
• Traders should be aware of these events and their potential impact on USDJPY’s volatility.