Key Highlights
- USD/JPY started a recovery wave from the 140.00 zone.
- A major bearish trend line is forming with resistance at 143.40 on the 4-hour chart.
- EUR/USD corrected gains below the 1.1450 support zone.
- GBP/USD could aim for a fresh increase above the 1.3400 level.
USD/JPY Technical Analysis
The US Dollar started a decent recovery wave above 140.50 against the Japanese Yen. USD/JPY climbed above the 141.50 and 142.00 resistance levels.
Looking at the 4-hour chart, the pair surpassed the 23.6% Fib retracement level of the downward move from the 148.28 swing high to the 139.88 low. However, the bears were active below the 144.00 level.
The pair remained below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). There is also a major bearish trend line forming with resistance at 143.40 on the same chart.
If there is a fresh increase, the pair could face resistance near the 143.40 level and the trend line. The next major resistance is near the 144.00 level and the 50% Fib retracement level of the downward move from the 148.28 swing high to the 139.88 low.
A close above the 144.00 level could set the tone for another increase. In the stated case, the pair could even clear the 145.00 resistance.
On the downside, immediate support sits near the 141.80 level. The next key support sits near the 141.20 level. Any more losses could send the pair toward the 140.00 level, where the bulls might take a stand.
Looking at EUR/USD, the pair corrected some gains below 1.0450 but the bulls might remain active above the 1.1280 level.
Upcoming Economic Events:
- IMF Meeting.
- Michigan Consumer Sentiment Index for April 2025 – Forecast 50.8, versus 50.8 previous.
