Key Highlights
- USD/JPY could attempt a fresh increase if it clears the 159.60 resistance.
- A bullish trend line is forming with support near 158.90 on the 4-hour chart.
- WTI Crude oil prices might resume its increase if it stays above $80.00.
- EUR/USD corrected some gains from 1.1720 before the bulls appeared.
USD/JPY Technical Analysis
The US Dollar remained supported above 157.50 against the Japanese Yen. USD/JPY seems to be facing a major hurdle near 159.60, which is acting as a breakout zone.
Looking at the 4-hour chart, the pair settled above 158.80, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair is now consolidating below the 50% Fib retracement level of the downward move from the 163.95 swing low to the 155.22 low.
On the upside, the pair could face resistance near the 159.60 level. The next major resistance might be 160.60 and the 200 simple moving average (green, 4-hour).
A close above 160.60 could start another steady increase. In the stated case, the bulls could aim for a move to 162.00. Any further gains might open the door for a test of 163.20.
If there is a fresh decline, USD/JPY might find support near 158.80. There is also a bullish trend line forming with support near 158.90. The first major support could be near 158.50. The next major support could be near 158.00.
A downside break and close below 158.00 might send the pair toward 157.20. Any more losses could open the door for a test of 156.40.
Looking at WTI Crude Oil, the bulls are active above the $80.00 support, and they might aim for a fresh increase.
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