Key Highlights
- USD/JPY started a sharp downside correction from 162.85.
- It traded below a key bullish trend line with support at 161.85 on the 4-hour chart.
- Bitcoin started a recovery wave and climbed above $60,000.
- EUR/USD attempted a fresh increase but might face hurdles near 1.1500.
USD/JPY Technical Analysis
The US Dollar failed to continue higher against the Japanese Yen. USD/JPY peaked at 162.84 on TitanFX and started a sharp pullback.
Looking at the 4-hour chart, the pair declined below the 162.00 and 161.20 support levels. There was a clear move below the 50% Fib retracement level of the upward move from the 159.54 swing low to the 162.84 high.
Moreover, it traded below a key bullish trend line with support at 161.85. If there are more losses, the pair could find bids near 160.60. The first major support could be near 160.30, the 200 simple moving average (green, 4-hour), and the 76.4% Fib retracement.
A downside break and close below 160.30 might send the pair toward 158.80. Any more losses could open the doors for a test of 156.50.
On the upside, the bears might remain active near 161.20. The next major resistance might be 162.50. A close above 162.50 could open the doors for a larger increase. In the stated case, the bulls could aim for a move to 163.20.
Looking at EUR/USD, the bulls attempted a recovery wave from 1.1350, but they could struggle near the 1.1500 resistance.
Upcoming Key Economic Events:
- Euro Zone Services PMI for June 2026 – Forecast 48.9, versus 48.9 previous.
- UK Services PMI for June 2026 – Forecast 48.7, versus 48.7 previous.
