USD/JPY Dips But Holds Key Uptrend Support

Key Highlights

• USD/JPY traded to a new multi-week high at 148.45.
• A few key supports are forming near 147.15 and 146.60 on the 4-hour chart.
• Bitcoin price failed to surpass $27,500 and corrected lower.
• The US Manufacturing PMI could rise from 47.9 to 48.0 in Sep 2023 (Preliminary).

USD/JPY Technical Analysis

The US Dollar followed a bullish path above the 147.00 pivot level against the Japanese Yen. USD/JPY even traded above 148.00 and traded to a new multi-week high at 148.45.

Looking at the 4-hour chart, the pair started a downside correction from 148.45. It is trading well above the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).

The first major support could be 147.15 or the 50% Fib retracement level of the upward move from the 145.89 swing low to the 148.45 high. It is close to the 100 simple moving average (red, 4 hours).

The next key support is seen near the 146.50 level, below which it could test the 200 simple moving average (green, 4 hours) at 146.15. If there is a move below 146.15, the pair could dive toward 145.20. Any more losses might send the pair toward the 144.50 level.

On the upside, the pair might face resistance near 148.20. The next major resistance is near the 148.50 zone. A close above 148.50 could start a steady increase toward 149.20. Any more gains might send USD/JPY toward the 150.00 handle.

Looking at Bitcoin, the price saw a strong rejection near the $27,500 zone and recently started a downside correction.

Economic Releases

• Germany’s Manufacturing PMI for Sep 2023 (Preliminary) – Forecast 39.5, versus 39.1 previous.
• Germany’s Services PMI for Sep 2023 (Preliminary) – Forecast 47.2, versus 47.3 previous.
• Euro Zone Manufacturing PMI for Sep 2023 (Preliminary) – Forecast 44.0, versus 43.5 previous.
• Euro Zone Services PMI for Sep 2023 (Preliminary) – Forecast 47.7, versus 47.9 previous.
• UK Manufacturing PMI for Sep 2023 (Preliminary) – Forecast 43.0, versus 43.0 previous.
• UK Services PMI for Sep 2023 (Preliminary) – Forecast 49.2, versus 49.5 previous.
• US Manufacturing PMI for Sep 2023 (Preliminary) – Forecast 48.0, versus 47.9 previous.
• US Services PMI for Sep 2023 (Preliminary) – Forecast 50.6, versus 50.5 previous.