[July 10] Important level involved in multiple price movements flips to become support

2024.07.10 [July 10] Important level involved in multiple price movements flips to become support

This article was :

published

updated

Recap of previous trading day (July 9)

Yesterday the USDJPY trended upward, making both higher highs and higher lows until it hit a high of 161.51 shortly after GMT 15:00.

Testimony from FRB Chairman Jerome Powell revealed almost no shift to a more dovish stance, and he emphasized the need to confirm data. The previous cautious approach towards easing too early is being maintained.

Recap of the Tokyo market and outlook going forward

Partly because today was a so-called "5/10 day" (a date ending in "5" or on a multiple of "10" on which Japanese companies often settle foreign exchange payments), the USDJPY began rising in the morning session. This upward momentum remained strong for some time even after the fixing of the TTM rate at GMT 00:55, and slightly before GMT 02:00 the price reached a high of 161.59.

Looking at the 1-hour chart of the USDJPY (as of GMT 00:50 on July 10), one reading of it is that the 161.28 level, which we have mentioned many times before, has flipped to provide support.