Key Highlights
- USD/JPY gained pace for a move above 148.50 before there was a pullback.
- A connecting bullish trend line is forming with support at 148.00 on the 4-hour chart.
- EUR/USD is showing signs of weakness below the 1.1700 level.
- GBP/USD could gain bearish momentum if there is a close below 1.3350.
USD/JPY Technical Analysis
The US Dollar remained supported above the 146.50 level against the Japanese Yen. USD/JPY broke hurdles near 147.50 and 148.00 to enter a positive zone.
Looking at the 4-hour chart, the pair settled below the 148.00 zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). A high was formed near 149.20 before the pair started a consolidation phase.
On the upside, the pair could face resistance near the 149.00 level and the trend line. The next key resistance sits near the 149.20 level. A close above the 149.20 level could set the pace for another increase.
In the stated case, the pair could rise toward the 150.00 resistance. The next major stop for the bulls could be near the 151.20 resistance.
On the downside, immediate support is near the 148.00 level. There is also a connecting bullish trend line forming with support at 148.00 on the same chart. The next key support sits near 147.45. Any more losses could send the pair toward the 146.50 support zone.
Looking at EUR/USD, the pair is struggling to start a fresh increase and might decline further below the 1.1550 level.
Upcoming Economic Events:
- US Housing Starts for June 2025 (MoM) – Forecast 1.30M, versus 1.256M previous.
- US Building Permits for June 2025 (MoM) – Forecast 1.390M, versus 1.394M previous.
- Michigan Consumer Sentiment Index for July 2025 (Prelim) – Forecast 61.5, versus 60.7 previous.
