Key Highlights
- USD/JPY rallied above the 148.80 and 150.00 resistance levels.
- A connecting bullish trend line is forming with support at 150.50 on the 4-hour chart.
- Crude oil prices corrected gains and traded below $81.50.
- Bitcoin attempted a fresh increase above the $65,000 resistance zone.
USD/JPY Technical Analysis
The US Dollar started a major increase against the Japanese Yen after the historic BoJ’s rate hike. USD/JPY rallied above the 148.80 resistance to move into a positive zone.
Looking at the 4-hour chart, the pair settled above the 150.00 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It tested the 151.80 resistance before there was a minor pullback.
The pair tested the 150.50 support zone and the 23.6% Fib retracement level of the upward move from the 146.47 swing low to the 151.81 high.
There is also a connecting bullish trend line forming with support at 150.50 on the same chart. On the upside, the pair could face resistance near the 151.80 level. The first major resistance is now forming near 152.00.
A close above the 152.00 zone could open the doors for more upsides. The next stop for the bulls might be 155.00. If not, the pair might correct lower. Immediate support is near the 150.50 level and the trend line.
The next major support is at 149.80 or the 100 simple moving average (red, 4-hour). If there is a downside break below the 100 simple moving average (red, 4-hour), the pair could decline toward the 146.50 support.
Looking at Bitcoin, the bulls attempted a fresh increase above the $65,000 resistance but they are facing hurdles near $68,000.
Economic Releases
- UK Retail Sales for Feb 2024 (YoY) – Forecast -0.3%, versus +3.4% previous.
- UK Retail Sales for Feb 2024 (MoM) – Forecast -0.7%, versus +0.7% previous.
- German IFO Business Climate Index for March 2024 – Forecast 86.0, versus 85.5 previous.
- Federal Reserve Chair Jerome Powell’s speech.
