Key Highlights
- USD/JPY is facing a strong resistance near 109.00 and 109.20.
- A crucial bearish trend line is forming with resistance near 109.20 on the weekly chart.
- EUR/USD recovered above 1.1950, but it is still below 1.2000.
- GBP/USD climbed above 1.3900 and it could continue higher above 1.4000.
USD/JPY Technical Analysis
In the past few weeks, the US Dollar saw a strong increase above 105.00 against the Japanese Yen. USD/JPY cleared many important hurdles near 106.00 and 107.20.
Looking at the weekly chart, the pair climbed above the 108.00 resistance and the 100-week simple moving average (red). However, the pair is struggling near a major hurdle at 109.00 (as discussed in the last analysis).
There is also a crucial bearish trend line forming with resistance near 109.20 on the same chart. The 200-week simple moving average (green) is also near the trend line and 109.20.
A clear break above the trend line resistance could open the doors for more upsides above the 110.00 and 110.50 resistance levels.
Conversely, the pair could start a downside correction below the 108.00 support zone. The first key support is near the 107.50 level and the 100-week simple moving average (red). Any more losses may possibly lead the pair towards the 106.50 support.
Looking at EUR/USD, the pair recovered above the 1.1900 resistance, but it is facing hurdles near 1.2000. Besides, GBP/USD is rising and it could accelerate higher if there is a close above 1.4000.
Economic Releases
- UK Industrial Production for Jan 2021 (MoM) – Forecast -0.6%, versus +0.2% previous.
- UK Manufacturing Production for Jan 2021 (MoM) – Forecast -0.8%, versus +0.3% previous.
- UK GDP for Jan 2021 (MoM) – Forecast -4.9%, versus +1.2% previous.
- German Consumer Price Index for Feb 2021 (YoY) – Forecast +1.3%, versus +1.3% previous.
- German Consumer Price Index for Feb 2021 (MoM) – Forecast +0.7%, versus +0.7% previous.
- Canada’s Net Employment Change for Feb 2021 – Forecast 75K, versus -212.8K previous.
- Canada’s Unemployment Rate for Feb 2021 – Forecast 9.2%, versus 9.4% previous.
