Today's Focus: USD/JPY - June 4, 2024


The yen's weakening and dollar's strengthening boost carry trades. Further yen declines enhance returns. Only positive news can break the yen's vicious cycle.


Today's Focus: USD/JPY - June 4, 2024

Carry trade drives yen depreciation: The weakening of the yen and the strengthening of the dollar have increased the attractiveness of carry trade. This further boosts the returns from carry trades, and only unexpected positive fundamental news can break this vicious cycle for the yen.

Central bank policy differences: If this week's employment data further enhances rate cut expectations, the dollar's depreciation trend this week might push the yen towards a short-term appreciation trend.

Technical Analysis Highlights:

Stochastic Indicator: According to the 4-hour chart, the indicator above the 50 median line is sending a bearish signal, and it is about to enter the oversold area, suggesting strong short-term downward momentum. It is worth monitoring for potential short-selling opportunities.

Moving Average Support: Based on the daily chart, yesterday's price broke below the black support line at the 156.560 level. If the rebound does not exceed this price, it is highly likely to break below the red 33-day moving average, targeting the black 65-day moving average.

Pivot Indicator:

Intraday pivot level at 155.75,

Above 155.75, bullish outlook with the first target at 157.03 and the second target at 157.40

Below 155.75, bearish outlook with the first target at 155.13 and the second target at 154.75

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End


Foreign Exchange Trading

Foreign exchange trading is a financial trading activity that seeks profit through the exchange rate differences between different countries' currencies. It is characterized by globalization, high liquidity, and leveraged trading. Participants include central banks, commercial banks, investment institutions, enterprises, and individual investors. However, it also involves potential risks such as market fluctuations and leverage risks.


Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.


Contact Us

Social Media