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The dove has not yet fallen, but the blade has arrived. Can the Japanese yen conquer 153.271 in one fell swoop?
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Hello everyone, today XM Forex will bring you "[XM Foreign Exchange Market www.xmmen.commentary]: The dove has not yet fallen, but the blade has arrived. Can the Japanese yen conquer 153.271 in one fell swoop?". Hope this helps you! The original content is as follows:
On Monday (October 13), the U.S. dollar against the Japanese yen maintained a "strong-repeated" seesaw rhythm during the European session, oscillating around 152.00. Affected by the synchronized holidays in Japan and the United States, liquidity is thin, and small orders can also drive large price fluctuations. The exchange rate failed to effectively expand its gains after approaching the upper intensive area several times. A subtle game between technology and fundamentals is unfolding.
Fundamentals:
The market focuses on three clues: first, the market is more convinced that the Bank of Japan (BoJ) may further delay the timing of interest rate hikes, and the yen's "interest rate disadvantage" will deepen; second, the pickup in external risk appetite - especially the change in Washington's latest external tariff policy - has weakened the appeal of the yen as a safe-haven currency; third, the shadow of intervention continues to linger. Recently, it is believed that the authorities may take action at any time to prevent further depreciation of the yen. This "unresolved" situation prevents short sellers from adding positions in a disorderly manner, resulting in a typical upward trend of slowing down and increasing volatility.
In contrast, there are two forces restraining each other in the United States. On the one hand, the market generally accepts that the Federal Reserve may still cut interest rates two more times this year, and the marginal decline in nominal interest rate differentials should supposedly suppress the dollar bulls; on the other hand, the dollar quickly regained momentum after last Friday's retracement. Even in the face of the dual disadvantages of interest rate cut pricing and an extension of the fiscal deadlock, the dollar index still showed strong "dips taking."
In addition, the U.S. government's shutdown since October 1 has entered its third week, the budget impasse has not yet been resolved, and the first layoff notification of federal employees has appeared. Under normal circumstances, this www.xmmen.combination of "policy uncertainty + growth drag" would put the dollar in a defensive posture. However, in real trading, the market chooses when risky assets rebound.They chose to sell the yen and were willing to hold on to the U.S. dollar when the demand for cash increased, forming a "unilateral tilt" against the U.S. dollar against the yen. Therefore, the net effect of the fundamentals is: the yen is under pressure and the dollar's resilience remains, but intervention deterrence makes each upward step higher in volatility costs.
Technical aspect:
On the current daily chart, the middle track of Bollinger is located at 148.735, the upper track is 152.676, and the lower track is 144.794. The exchange rate is running above the middle track and below the upper track, which is a typical "high level consolidation within a strong channel". The recent high of 153.271 is clearly marked, and the previous strong peak of 150.914 is an important retracement reference; the lower stage lows are 145.480 and the earlier 142.110 respectively. In terms of momentum structure, MACD(26,12,9) shows that DIFF=1.148 is higher than DEA=0.717, and the histogram is 0.861, which is in the positive expansion range, indicating that the mid-term bull momentum is still being released but is close to the previous peak area; RSI(14) reads about 63.961, which is in the bull zone without touching the typical overbought threshold (near 70), suggesting "strong but not extreme."
www.xmmen.comprehensive judgment: 152.676 (Bollinger upper track) constitutes short-term dynamic resistance. If it can break through and stabilize at the close of the heavy volume day, the upper side is expected to launch another backtest of 153.271; on the contrary, if it fails repeatedly and falls back to the 152.00 round number Below the position, the technical retracement direction will first look at 150.914, followed by the backtest of 148.735 (Bollinger middle track); if the mood suddenly changes or triggers intervention, the 144.794 (Bollinger lower track)-145.480 area will serve as the first mid-term support. It is worth noting that the bandwidth has been significantly opened www.xmmen.compared to the previous period. If the upper shadow line increases after the high long real body positive line and the volume cannot keep up, it will easily evolve into the rhythm of "false breakthrough-retracement-reselection".
Outlook:
Short-term (1-3 trading days): If the exchange rate effectively closes above 152.676 with a positive body, and the MACD histogram continues to enlarge, 153.271 will be challenged again. Once there is a three-way trend of "break above - backtest - rise again". It is further confirmed that the short-term trend can be extended; if it touches 152.676 multiple times and fails to stand firm and falls back below 152.00, it will enter the "high shock-retracement" stage. First, look at the support elasticity of 150.914, and if it falls further, observe the long-short watershed of 148.735 (Bollinger Middle Track). Taking into account the uncertainty of intervention, the probability of a long shadow at a high level and rapid retracement increases. The price crossing needs to be based on the daily closing price to judge the "true or false breakthrough".
The above content is all about "[XM Foreign Exchange Market www.xmmen.commentary]: The dove has not yet fallen, the blade has arrived, can the Japanese yen conquer 153.271 in one fell swoop?" It was carefully www.xmmen.compiled and edited by the XM foreign exchange editor. I hope it will be helpful to your trading! Thanks for the support!
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