20 Dec, 2023
5 minutes
Daily Technical Analysis December 20th 2023
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:
The Bank of Japan maintained its loose monetary policy on Tuesday, in line with broad market expectation and underscoring policymaker tendency to wait for more clues on whether wage increase is enough to keep inflation near its 2% target for sustained period. The BOJ also did not change its dovish policy guidance, dashing the hope of some investors. They had predicted central bank to adjust its rhetoric to show that negative interest rate would end soon.
Trend Analysis:
We can see USD/JPY failed to break through and it is running above 48 hours moving average on H4 chart. The MACD double line and the energy bar is shrinking near zero axis. It is not ruled out that it will further test the support area below. The sell limit could be placed, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [140.70]
Key Resistance Levels: [145.40]
Pivot Points [144.70]
2. Crude Oil Analysis:
News Summary:
Goldman Sachs strategists cut crude oil price in 2024 in a report. The recent US oil supply growth reinforces the key feature of oil market in 2023, which is that oil production from producers outside OPEC+ will far exceed expectations. Oil price would see moderate volatility in the year ahead as spare capacity may limit the impact of the supply crunch and room for price upside.
Trend Analysis:
We can see the correction of crude oil, it tried to break through again, but the MACD double line and histogram bar shrank near the zero axis. Overall downward pressure on oil price is limited as OPEC+ measures to prevent oversupply will remain in place, while loose financial conditions will provide support for oil demand. Hence, the buy limit can be employed, stop loss is compulsory.
Today's Key Price Levels:
Key Support Levels: [70.74]
Key Resistance Levels: [77.00]
Pivot Points [72.00]