DBG foreign exchange trading reminder: a word from a senior Japanese official ignites the market

Japanese Finance Minister Shunichi Suzuki said on Friday that he would respond appropriatelyforeign exchange marketAfter Suzuki Shunichi's comments, the USD/JPY fell sharply and dragged the USD index down rapidly, reaching a low of 104.85.

On Friday (September 8) in the Asian market, the US dollar index suddenly plunged in the short term, reaching a minimum near 104.85, a decline of about 0.2%, giving up most of the overnight gains. Nicholas Kitonyi, an analyst at the well-known financial website FXDailyReport, recently wrote an analysis of the future trend of the US dollar.

(15-Minute chart of the US dollar index)

The ICE Dollar Index, which tracks the dollar against six major currencies, rose 0.18 percent to 105.05 on Thursday, rising to an intraday high of 105.16, another six-month high.

Initial jobless claims unexpectedly fell to 216,000 in the week ending Sept. 2, the lowest since February, while economists had predicted they would rise to 234,000 last week, the Labor Department said.

Japanese Finance Minister Shunichi Suzuki said on Friday that he would properly handle excessive volatility in the foreign exchange market and would not rule out any options.

Suzuki Shunichi said that the exchange rate should fluctuate smoothly to reflect economic fundamentals; it is not advisable for the exchange rate to fluctuate too much; and the exchange rate trend will be monitored with great urgency.

After Suzuki's comments, USD/JPY fell 0.3% to 146.88, after falling 0.5% earlier. The sharp drop in USD/JPY also dragged the USD index down rapidly, reaching a low of 104.85, setting a new intraday low.

Two charts to see the technological future of the US dollar

Kitonyi wrote that in terms of short-term movement, Kitonyi said that the dollar index appears to be in an upward channel in the 60-minute chart.However, the MACD indicator appears to be losing steam, indicating a possible correction.

Therefore, the dollar bears will set their short-term profit target at 104.79. On the other hand, the bulls will set their short-term profit target around 105.16, or higher to 105.31.

(60-Minute chart of the US dollar index)

DBG ForexIt is pointed out that on the daily chart, the dollar index appears to be trading in an upward channel. The MACD indicator also appears to support long-term bullish sentiment after completing the upward cross.

Therefore, the dollar bulls will look to advance towards 105.59 or higher at 106.15 in the rising wave. On the other hand, the bears will set their long-term profit target around 104.62, or even lower at 104.08.

(Daily chart of US dollar index)