Key Highlights
- USD/JPY started a fresh decline and traded below the 144.00 level.
- It traded above a connecting bearish trend line with resistance at 143.05 on the 4-hour chart.
- EUR/USD is rising and might clear the 1.1420 resistance zone.
- GBP/USD is holding gains and could aim for a move above the 1.3600 resistance.
USD/JPY Technical Analysis
The US Dollar started a recovery wave from the 142.20 zone against the Japanese Yen. USD/JPY climbed above the 143.00 and 143.50 levels.
Looking at the 4-hour chart, the pair traded above a connecting bearish trend line with resistance at 143.05. It even climbed above the 146.00 level before the bears appeared. A high was formed at 146.23 and the price started a fresh decline.
There was a move below the 144.00 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
On the upside, the pair could face resistance near the 144.20 level. The next key resistance sits near the 144.50 level. The first major resistance sits at 145.00. A close above the 145.00 level could set the pace for another increase.
In the stated case, the pair could even clear the 146.00 resistance. The next major stop for the bulls could be near the 147.80 resistance.
On the downside, immediate support sits near the 143.00 level. The next key support sits near 142.50. Any more losses could send the pair toward the 141.20 pivot level in the near term. The main support could be near 140.00.
Looking at EUR/USD, the pair started another increase, and the bulls could now aim for a move above the 1.1420 resistance.
Upcoming Economic Events:
- US Personal Income for April 2025 (MoM) – Forecast +0.4%, versus +0.2% previous.
- US Core Personal Consumption Expenditure for April 2025 (MoM) – Forecast +0.1%, versus -0.1% previous.
