Key Highlights
- USD/JPY failed to accelerate higher above the 110.40 region.
- A key bullish trend line is forming with support near 109.75 on the 4-hours chart.
- EUR/USD climbed further above 1.1850, and GBP/USD broke the 1.3800 resistance.
- The US nonfarm payrolls could increase 750K in August 2021, down from 943K.
USD/JPY Technical Analysis
The US Dollar attempted an upside break above 110.50 against the Japanese Yen. However, USD/JPY failed near 110.40 and it started a fresh downside correction.
Looking at the 4-hours chart, the pair corrected lower below the 110.20 support zone. There was a break below the 50% Fib retracement level of the upward move from the 109.58 swing low to 110.42 high.
The pair is now trading just below 110.00, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The main breakdown support seems to be forming near 109.75. There is also a key bullish trend line forming with support near 109.75 on the same chart. The trend line coincides with the 76.4% Fib retracement level of the upward move from the 109.58 swing low to 110.42 high.
A downside break below the trend line support could spark a drop towards the 109.00 support. On the upside, an immediate resistance is near the 110.20 zone.
The main resistance is near the 110.50 zone. A close above the 110.50 resistance might open the doors for a steady increase. The next major resistance sits near 110.80 and 111.00.
Looking at EUR/USD, the pair extended its increase above the 1.1850 resistance zone. Besides, GBP/USD gained strength for a move above the key 1.3800 resistance zone.
Economic Releases
- Germany’s Services PMI for August 2021 – Forecast 61.5, versus 61.5 previous.
- Euro Zone Services PMI for August 2021 – Forecast 59.7, versus 59.7 previous.
- UK Services PMI for August 2021 – Forecast 55.5, versus 55.5 previous.
- US Services PMI for August 2021 – Forecast 55.2, versus 55.2 previous.
- US nonfarm payrolls for August 2021 – Forecast 750K, versus 943K previous.
- US Unemployment Rate for August 2021 – Forecast 5.2%, versus 5.4% previous.
