USDJPY Analysis – November-21-2023

Our latest USDJPY Technical Analysis shows that the USDJPY pair’s downward correction has extended below the 23.6% Fibonacci retracement level after closing below the pivot line. The ADX (Average Directional Index) indicator, hovering below the 20 level, indicates that market volatility remains low. Despite the ADX signaling a sideways market, the Super trend indicator supports the decline in USDJPY.

USDJPY Technical Analysis – Daily Chart

Analysts at Solid ECN suggest that the bearish momentum has more potential and could extend to the lower band of the bullish flag, aligning with the 38.2% Fibonacci retracement level. This analysis points to a continued bearish trend in the short term, making it a focal point for traders monitoring the USDJPY dynamics.

Japanese Stock Market Trends

Reuters – Japan’s leading stock indexes experienced a downturn in recent market activity. The Nikkei 225 Index, a key indicator of market performance, slightly fell by 0.1%, ending at 33,354 points. Similarly, the Topix Index, representing a broader range of stocks, also dropped by 0.2% to finish at 2,368 points. This marks the second consecutive session of decline for both indexes. The downward trend follows a period of consistent gains over the last three weeks as investors opted to secure their profits.

Factors Influencing the Market

The market’s cautious approach is partly due to anticipation of upcoming economic reports. Investors eagerly await new data on Japan’s manufacturing and service sectors and inflation figures. These reports are crucial as they provide insights into the country’s economic condition. In other global news, Microsoft, a major player in the US market, saw its shares increase by 2.1% on Monday. This surge followed the company’s decision to appoint Sam Altman, the founder of OpenAI, as the head of its artificial intelligence research team. Meanwhile, Nvidia, another prominent tech company, also witnessed a 2.3% rise in anticipation of its earnings report.

Performance of Japanese Companies

On the other hand, several Japanese corporate giants recorded notable losses. Toyota Motor’s shares decreased by 1.6%, while Mitsubishi UFJ faced a 1.7% decline. Other significant losses were observed in Ajinomoto, down by 1.8%, Honda Motor, which fell 2.2%, and Fast Retailing, experiencing a 0.7% drop.