Key Highlights
- USD/JPY traded above the 140.00 and 140.50 resistance levels.
- A major bullish trend line is forming with support near 139.40 on the 4-hour chart.
- EUR/USD rallied above the 1.0850 and 1.0880 resistance levels.
- GBP/USD surged and broke the 1.2650 resistance zone.
USD/JPY Technical Analysis
The US Dollar remained in a positive zone above the 139.20 support against the Japanese Yen. USD/JPY climbed higher above the 139.50 and 140.00 resistance levels to move into a positive zone.
Looking at the 4-hour chart, the pair settled above the 140.00 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
Finally, there was a move above the 141.00 level. A high was formed near 141.51 before the pair started a downside correction. There was a move below the 140.80 level. The pair declined below the 50% Fib retracement level of the upward move from the 139.01 swing low to the 141.51 high.
Immediate support is near the 139.60 level or the 76.4% Fib retracement level of the upward move from the 139.01 swing low to the 141.51 high.
There is also a major bullish trend line forming with support near 139.40 on the same chart. The next major support is near the 139.20 level. If there is a downside break below the 139.20 support, the pair could decline toward the 138.50 support. Any more losses might send USD/JPY toward 138.00.
If there is a fresh increase, the pair could face resistance near 141.20. The first major resistance is near the 141.50 level. If there is a move above the 141.50 resistance, the pair could rise toward 142.20.
Looking at EUR/USD, the pair accelerated higher above the 1.0850 resistance zone and is showing a lot of positive signs on the 4-hour chart.
Economic Releases
- Euro Zone HCPI for May 2023 (YoY) – Forecast +6.1%, versus +6.1% previous.
- Euro Zone HCPI for May 2023 (MoM) – Forecast 0%, versus 0% previous.
