[December 26] Yen selling slightly dominant, but momentum lacks power to chase higher prices

2024.12.26 [December 26] Yen selling slightly dominant, but momentum lacks power to chase higher prices

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Recap of previous trading day (December 25)

Yesterday , after Bank of Japan Governor Kazuo Ueda stated shortly after GMT 04:00 that "the timing and pace of monetary easing adjustments will depend on future economic, price, and financial conditions," which was seen as continuing his dovish stance, the USDJPY reached a high of 157.34 around GMT 04:30.

Due to low market participation during the Christmas holiday, it did not continue to rise, and trading for the day closed at the higher end of the range.

Recap of the Tokyo market and outlook going forward

Today the USDJPY touched a low of 157.07 around GMT 00:00, then rose to reach a high of 157.47 around GMT 01:30. As of GMT 04:00, it is trading in the 157.3 range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:00 on December 26), it is trading between +1 standard deviation and +2 standard deviations, exceeding the range ceiling of 157.4. With the middle line beginning to show an angle, an upward bias appears appropriate.