Key Highlights
- USD/JPY climbed higher toward 146.50 before the bears appeared.
- It traded below a key bullish trend line with support at 145.95 on the 4-hour chart.
- EUR/USD is struggling to recover above the 1.0950 zone.
- Gold prices extended losses below the $1,900 level.
USD/JPY Technical Analysis
The US Dollar remained in a positive zone above the 143.50 level against the Japanese Yen. USD/JPY extended its increase above the 145.00 resistance.
Looking at the 4-hour chart, the pair settled above the 145.00 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
Finally, the bears appeared near the 146.50 level. Recently, there was a minor downside correction below the 146.00 level. Besides, the pair traded below a key bullish trend line with support at 145.95 on the same chart.
The first key support is seen near the 145.35 level or the 23.6% Fib retracement level of the upward move from the 141.51 swing low to the 146.55 high.
If there is a move below 145.35, the pair could correct lower toward 144.00. It is close to the 50% Fib retracement level of the upward move from the 141.51 swing low to the 146.55 high.
On the upside, an initial resistance is near the 146.30 level. The first major resistance is near 146.50. A close above the 16.500 resistance could start a decent increase. In the stated case, the pair could rise toward the 147.50 level. Any more gains could start a fresh increase toward the 148.00 level.
Looking at EUR/USD, the pair is still in a bearish zone and is struggling to start a recovery wave above the 1.0950 level.
Economic Releases
- Euro Zone CPI for July 2023 (YoY) – Forecast +5.3%, versus +5.3% previous.
- Euro Zone CPI for July 2023 (MoM) – Forecast -0.1%, versus -0.1% previous.
