Key Highlights
- USD/JPY is attempting a fresh increase from the 158.25 zone.
- A major bearish trend line is forming with resistance at 159.60 on the 4-hour chart.
- EUR/USD climbed toward 1.1820 before correcting some gains.
- WTI Crude Oil prices are under pressure below $96.40 and $98.50.
USD/JPY Technical Analysis
The US Dollar found support near 158.25 and started a fresh increase against the Japanese Yen. USD/JPY surpassed 158.80 and 159.20.
Looking at the 4-hour chart, the pair settled above the 158.80 level and the 200 simple moving average (green, 4-hour). There was a clear move above the 50% Fib retracement level of the downward move from the 159.86 swing high to the 158.26 low.
The pair even tested 159.25 and the 100 simple moving average (red, 4-hour). On the upside, the pair faces resistance at 159.50. The first major resistance sits at 159.60. There is also a major bearish trend line forming with resistance at 159.60.
The main resistance could be 159.85. A close above 159.85 could open doors for gains above 160.00. In the stated case, the bulls could aim for a move to 161.20.
Immediate support is seen near 158.85 and the 200 simple moving average (green, 4-hour). The first key support sits at 158.50. The next key area of interest might be near 158.25.
A close below 158.25 might push the pair toward 157.90. Any more losses could initiate a fresh move to 156.50 in the coming days.
Looking at Oil, the price started a consolidation phase, and upside might face resistance near $96.40 and $98.50.
Upcoming Key Economic Events:
- Fed’s Daly speech.
- Fed’s Waller speech.
