Fri, Jan 27, 2023 @ 05:09 GMT
HomeContributorsTechnical AnalysisUSD/JPY Faces Uphill Task Near 134.00

USD/JPY Faces Uphill Task Near 134.00

Key Highlights

  • USD/JPY is attempting a recovery wave above the 131.50 resistance zone.
  • A major bearish trend line is forming with resistance near 133.60 on the 4-hours chart.
  • Gold remains well supported above the $1,820 pivot zone.
  • The US nonfarm payrolls could decline from 263K to 200K in Dec 2022.

USD/JPY Technical Analysis

The US Dollar extended its decline below the 132.00 level against the Japanese Yen. USD/JPY found support near 129.50 and recently started a recovery wave.

Looking at the 4-hours chart, the pair traded as low as 129.50 and climbed higher. There was a move above the 130.00 and 130.50 resistance levels. The bulls were able to push the pair above the 50% Fib retracement level from the 134.50 swing high to 129.50 low.

However, the pair is trading below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

On the upside, an initial resistance is near the 133.20 level. There is also a key bearish trend line forming with resistance near 133.50 on the same chart. The next major resistance may perhaps be near 134.00.

A clear move above the 134.00 resistance might start a steady increase. In the stated case, USD/JPY might start a steady increase. In the stated case, the pair could rise towards the 135.00 level.

On the downside, there is a key support at 131.00. The main support is now forming near the 130.00 level. A downside break below the 130.00 zone might push the pair lower. The next major support sits near the 129.50 level. Any more losses might open the doors for a move towards the 128.00 support zone.

Looking at gold price, the bulls are active above the $1,820 and $1,810. Moving ahead, the price might start another increase towards $1,880.

Economic Releases

  • Euro Zone CPI for Dec 2022 (YoY) (Prelim) – Forecast +9.7%, versus +10.1% previous.
  • Euro Zone CPI for Dec 2022 (MoM) – Forecast +0.8%, versus -0.1% previous.
  • US nonfarm payrolls for Dec 2022 – Forecast 200K, versus 263K previous.
  • US Unemployment Rate for Dec 2022 – Forecast 6.7%, versus 6.7% previous.
  • Canada’s employment Change payrolls for Dec 2022 – Forecast 8K, versus 10.1K previous.
  • Canada’s Unemployment Rate for Dec 2022 – Forecast 5.2%, versus 5.1% previous.
Titan FX
Titan FXhttp://titanfx.com
Titan FX is a technology driven online ECN forex and commodities broker that provides traders with next generation trading conditions, institutional grade spreads, fast trade execution, deep top tier liquidity and the security of financial registration and oversight.

Featured Analysis

Learn Forex Trading