HomeContributorsTechnical AnalysisUSD/JPY Consolidates Gains, US NFP Report Next

USD/JPY Consolidates Gains, US NFP Report Next

Key Highlights

  • USD/JPY rallied toward 152.00 before it started a consolidation phase.
  • A major bullish trend line is forming with support at 151.20 on the 4-hour chart.
  • Gold prices rallied further and tested the $2,300 resistance.
  • The US nonfarm payrolls could decline from 275K to 200K in March 2024.

USD/JPY Technical Analysis

The US Dollar started a major increase above the 148.80 resistance against the Japanese Yen. USD/JPY cleared the 150.00 level to move further into a positive zone.

Looking at the 4-hour chart, the pair even settled above the 150.50 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, the pair tested the 152.00 resistance zone.

A high was formed near 151.97 before the pair started a consolidation phase. 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 153.20. If not, the pair might start a downside correction.

Immediate support is near the 151.20 level. There is also a major bullish trend line forming with support at 151.20 on the same chart. The next major support is at 150.65 or the 23.6% Fib retracement level of the upward move from the 146.47 swing low to the 151.97 high.

If there is a downside break below the 150.65 support, the pair could decline toward the 150.00 support. Any more losses might send the pair toward the 148.50 level in the near term.

Looking at Gold, the bulls were able to push the price toward the $2,300 level and now there are chances of a consolidation phase.

Economic Releases

  • US nonfarm payrolls for March 2024 – Forecast 200K, versus 275K previous.
  • US Unemployment Rate for March 2024 – Forecast 3.9%, versus 3.9% previous.
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