HomeContributorsTechnical AnalysisUSD/JPY Could Correct Gains But Dips Might Be Limited

USD/JPY Could Correct Gains But Dips Might Be Limited

Key Highlights

  • USD/JPY climbed toward 147.80 before the bears appeared.
  • Many key supports are forming near 146.55 and 146.15 on the 4-hour chart.
  • EUR/USD extended losses and traded below 1.0720.
  • GBP/USD took a major hit and traded below 1.2500.

USD/JPY Technical Analysis

The US Dollar remained in a positive zone above the 145.00 level against the Japanese Yen. USD/JPY traded above the 146.50 and 147.00 levels to move further into a positive zone.

Looking at the 4-hour chart, the pair settled above 147.00, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

Finally, it faced resistance near the 147.85 zone. A high is formed near 147.87 and recently started a downside correction. On the downside, immediate support is near 146.75. The next key support is seen near the 146.55 level.

The first major support is near 146.15 and the 100 simple moving average (red, 4 hours). If there is a move below 146.15, the pair could dive toward 145.50. Any more losses might send the pair toward the 144.40 level and the 200 simple moving average (green, 4 hours).

On the upside, an initial resistance is near the 147.85 level. The first major resistance is near the 148.00 level. A close above 148.00 could start another decent increase.

In the stated case, the pair could rise toward the 149.20 level. Any more gains could send the pair toward the 130.00 handle.

Looking at EUR/USD, the pair remained in a bearish zone and there was an extended decline below the 1.0720 support.

Economic Releases

  • Canada’s employment Change for August 2023 – Forecast 15K, versus -16.4K previous.
  • Canada’s Unemployment Rate for August 2023 – Forecast 5.6%, versus 5.5% previous.
  • US Wholesale Inventories for July 2023 (preliminary) – Forecast -0.1%, versus -0.1% previous.
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