Tue, May 30, 2023 @ 11:16 GMT
HomeContributorsTechnical AnalysisUSD/JPY Extends Rally, US GDP Grows 1.3% in Q1

USD/JPY Extends Rally, US GDP Grows 1.3% in Q1

Key Highlights

  • USD/JPY climbed further higher above the 140.00 resistance.
  • A key bullish trend line is forming with support near 138.90 on the 4-hour chart.
  • EUR/USD and GBP/USD declined to new monthly lows.
  • The US Gross Domestic Product grew 1.3% in Q1 2023 (Preliminary).

USD/JPY Technical Analysis

The US Dollar started a major increase above the 137.50 resistance against the Japanese Yen. USD/JPY traded above the 138.50 resistance to move further into a positive zone.

Looking at the 4-hour chart, the pair settled above the 138.80 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

The upward move was such that the pair traded above the 140.00 resistance. It seems like the bulls are in control and might aim for more upsides above 140.00. The next major resistance is near 140.80, above which the pair could rise toward the 142.00 level.

On the downside, the pair might find support near 139.00. The next major support is near the 138.80 level. There is also a key bullish trend line forming with support near 138.90 on the same chart.

If there is a downside break below the trend line support, the pair could decline toward the 138.00 support level. The next major support sits near the 137.40 level.

Looking at EUR/USD, the pair failed to start a recovery wave and extended its decline below the 1.0750 support zone.

Economic Releases

  • US Personal Income for April 2023 (MoM) – Forecast +0.4%, versus +0.3% previous.
  • US Durable Goods Orders for April 2023 – Forecast -1% versus +3.2% previous.
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