Daily Technical Analysis

Introduction: 

Welcome to our daily technical analysis of the financial markets, focusing today on USD/JPY and Crude Oil. Let's dissect the latest news, market trends, and crucial price levels to watch out for.  

1. USD/JPY Analysis: 

News Summary: 

Japan's government downgraded its view on the economy, citing weak demand weighing on capital and consumer spending. The economy is recovering modestly, despite business condition and corporate earnings continue to improve, strength in the corporate sector does not necessarily translate into wages and investment. Inflation remains a problem for the Bank of Japan, with the national inflation rate at 3.0%. Notably, a renewed rise in inflationary pressures will increase bets that the BOJ will move away from its easing policy stance.  

Trend Analysis: 

We can see USD/JPY touched bottom and then jumped. The price currently is close to 48 hours moving average, but MACD double line has begun to shrink below the zero axis on H4 chart. The market bets on the Bank of Japan exiting negative interest rate and the FED cutting interest rates in May next year have tilted monetary policy toward the yen. Based on H4 level, sell limit tactic is useful, stop loss is necessary.  

Today's Key Price Levels: 

Key Support Levels: [147.70] 

Key Resistance Levels: [150.20] 

Pivot Points [149.60]

2. Crude Oil Analysis:  

News Summary: 

Oil price pulled back after two consecutive sessions of gains, with investors cautious ahead of OPEC+ meeting on Sunday, where the producer group is likely to discuss deepening production cuts amid slowing global economic growth. Industry data on US crude supplies showed crude inventories rising. Oil price has fallen about 16% since the end of September as crude output in the United States, remains at record highs and amid concerns about growing demand and a slowing economy.  

Trend Analysis: 

We can see crude oil rebounded after correction, and MACD histogram bar and double line moved upward again near zero axis on H4 chart. Despite ongoing economic pressures, demand was supported by Asian markets, resilient US market and relatively stable European market. It is expected that the demand structure may change, with future demand growth coming from overall economic expansion. The short-term strategy is to arrange sell limit, stop loss is mandatory.  

 Today's Key Price Levels: 

Key Support Levels: [73.00] 

Key Resistance Levels: [80.00]

Pivot Points [77.00]