Key Highlights
- USD/JPY is recovering higher from the 137.25 zone.
- It is facing many hurdles near 141.20 on the 4-hour chart.
- EUR/USD started a downside correction below 1.1200.
- GBP/USD extended its decline toward the 1.2840 support.
USD/JPY Technical Analysis
The US Dollar declined heavily below the 141.20 support zone against the Japanese Yen. USD/JPY even traded below 139.00 before the bulls appeared.
Looking at the 4-hour chart, the pair tested the 137.25 zone. A low was formed near 137.23 and the pair is now recovering higher. There was a move above the 139.00 resistance.
The pair climbed above the 23.6% Fib retracement level of the downward move from the 145.07 swing high to the 137.23 low. It is now facing resistance near the 141.20 level and the 200 simple moving average (green, 4 hours).
The next resistance is near the 100 simple moving average (red, 4 hours) or the 61.8% Fib retracement level of the downward move from the 145.07 swing high to the 137.23 low.
Any more gains might send the pair toward the 145.00 resistance zone in the near term. Immediate support is near the 139.00 level. There is also a rising channel forming with support at 139.00.
The next major support is seen near the 138.50 level, below which there could be a drop to 137.25. Any more losses might send the pair toward the 136.50 support zone.
Looking at EUR/USD, the pair failed to start a fresh increase and recently started a downside correction below the 1.1200 support.
Economic Releases
- UK Retail Sales for June 2023 (YoY) – Forecast -1.5%, versus -2.1% previous.
- UK Retail Sales for June 2023 (MoM) – Forecast +0.2%, versus +0.3% previous.
