USD/JPY Extends Rally As The Bulls Aim 144.00

Key Highlights

• USD/JPY started a fresh increase above the 142.00 resistance.
• A key bullish trend line is forming with support near 142.25 on the 4-hour chart.
• EUR/USD struggled to gain bullish momentum above 1.1000.
• The US Manufacturing PMI could remain below 50 at 48.5 in June 2023 (Preliminary).

USD/JPY Technical Analysis

The US Dollar remained well-bid above the 141.20 support against the Japanese Yen. USD/JPY formed a base and started a fresh increase above the 142.00 resistance.

Looking at the 4-hour chart, the pair settled above the 142.20 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours). There was a clear move above the 1.236 Fib expansion level of the downward move from the 142.25 swing high to the 141.21 low.

The first major resistance is near the 142.90 level or the 1.618 Fib expansion level of the downward move from the 142.25 swing high to the 141.21 low.

If there is a move above the 142.90 resistance, the pair could rise toward 143.50. Any more gains might send USD/JPY toward the 144.00 level.

Immediate support is near the 142.25 level. There is also a key bullish trend line forming with support near 142.25 on the same chart.

The next major support is near the 141.85 level. If there is a downside break below the 141.85 support, the pair could decline toward the 141.20 support. The main support sits at 140.25 and the 100 simple moving average (red, 4 hours).

Looking at EUR/USD, the pair jumped above the 1.0950 resistance but it seems to be struggling above the 1.1000 resistance zone.

Economic Releases

• Germany’s Manufacturing PMI for June 2023 (Preliminary) – Forecast 43.5, versus 43.2 previous.
• Germany’s Services PMI for June 2023 (Preliminary) – Forecast 56.2, versus 57.2 previous.
• Euro Zone Manufacturing PMI June 2023 (Preliminary) – Forecast 44.8, versus 44.8 previous.
• Euro Zone Services PMI for June 2023 (Preliminary) – Forecast 54.5, versus 55.1 previous.
• UK Manufacturing PMI for June 2023 (Preliminary) – Forecast 46.8, versus 47.1 previous.
• UK Services PMI for June 2023 (Preliminary) – Forecast 54.8, versus 55.5 previous.
• US Manufacturing PMI for June 2023 (Preliminary) – Forecast 48.5, versus 48.4 previous.
• US Services PMI for June 2023 (Preliminary) – Forecast 54.0, versus 54.9 previous.