Key Highlights
- USD/JPY found support near 142.35 and started a fresh increase.
- A connecting bullish trend line is forming with support at 143.80 on the 4-hour chart.
- GBP/USD is correcting gains and trading below the 1.3300 support zone.
- EUR/USD started another decline and traded below the 1.1265 support zone.
USD/JPY Technical Analysis
The US Dollar remained supported above 142.20 against the US Dollar. USD/JPY is again rising and aims for a move above the 146.00 level.
Looking at the 4-hour chart, the pair started a fresh increase above the 143.50 and 144.00 levels. The pair settled above the 100 simple moving average (red, 4-hour) and recently surpassed the 200 simple moving average (green, 4-hour).
There was a clear move above the 76.4% Fib retracement level of the downward move from the 145.92 swing high to the 142.35 low.
Besides, there is a connecting bullish trend line forming with support at 143.80 on the same chart. The pair is now facing resistance near the 146.00 level. The next major resistance is near the 146.75 zone.
A close above the 147.75 level could set the tone for another increase. In the stated case, the pair could even clear the 148.50 resistance. The next major stop for the bulls could be near the 150.00 level.
On the downside, immediate support sits near the 145.00 level and the 200 simple moving average (green, 4-hour). The next key support sits near the 144.20 level. Any more losses could send the pair toward the 143.50 level.
Looking at EUR/USD, the pair started a fresh decline and the bears were able to push the pair below the 1.1265 support.
Upcoming Economic Events:
- Fed’s Kugler speech.
- Fed’s Goolsbee speech.
- Fed’s Waller speech.
- Fed’s Williams speech.
