Key Highlights
- USD/JPY failed to settle above 159.00 and dipped.
- It traded below a key bullish trend line with support at 158.00 on the 4-hour chart.
- GBP/USD could start a pullback from the 1.3420 resistance.
- Gold prices reacted to the downside and might even test $3,880.
USD/JPY Technical Analysis
The US Dollar failed to remain in a positive zone against the Japanese Yen. USD/JPY started a fresh decline below 158.00 and 157.50.
Looking at the 4-hour chart, the pair even traded below a key bullish trend line with support at 158.00. There was a close below 157.50 and the 100 simple moving average (red, 4-hour). Finally, the pair spiked below the 200 simple moving average (green, 4-hour).
It tested the 156.70 zone and started a consolidation phase. If there is a recovery wave, the pair could face resistance near the 50% Fib retracement level of the downward move from the 158.60 swing high to the 156.69 low.
The first major resistance might be near 158.00 and the 100 simple moving average (red, 4-hour). A close above 158.00 could start a steady increase. In the stated case, the pair might even surpass 158.60.
Conversely, the pair could see another decline. Immediate support could be 156.70. The first major support might be 156.25. A close below 156.25 might accelerate the decline. In the stated case, the pair might drop to 155.50. The main support might be close to 155.00.
Looking at Gold, the price failed to surpass the $4,220 resistance, dipped again, and might drop toward the $3,880 support.
Upcoming Key Economic Events:
- Euro Zone Manufacturing PMI for Oct 2026 (Preliminary) – Forecast 52.8, versus 52.9 previous.
- Euro Zone Services PMI for Oct 2026 (Preliminary) – Forecast 52.8, versus 53.0 previous.
- US S&P Global Manufacturing PMI for Oct 2026 (Preliminary) – Forecast 55.6, versus 55.9 previous.
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