HomeContributorsTechnical AnalysisUSD/JPY's Upward Trajectory: Can the Pair Hit New Peaks?

USD/JPY’s Upward Trajectory: Can the Pair Hit New Peaks?

Key Highlights

  • USD/JPY is holding gains above the 156.20 support zone.
  • A major bullish trend line is forming with support at 156.50 on the 4-hour chart.
  • Gold prices are again slipping lower toward the $2,280 level.
  • EUR/USD failed to recover above the 1.0850 resistance zone.

USD/JPY Technical Analysis

The US Dollar remained well-supported above the 155.50 level against the Japanese Yen. After the Fed decision, USD/JPY started another increase above 156.20.

Looking at the 4-hour chart, the pair cleared the 156.50 resistance and settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair surpassed the 76.4% Fib retracement level of the downward move from the 157.40 swing high to the 155.72 low.

Therefore, there is a high chance of a move above the 157.40 resistance. The first major resistance is near the 158.00 level.

A clear move above the 158.00 resistance might send it toward the 159.20 level. Any more gains might call for a move toward the 160.00 level in the near term.

If not, the pair might correct gains. Immediate support is near the 156.75 level. The next major support is near the 156.50 zone. There is also a major bullish trend line forming with support at 156.50 on the same chart.

A downside break and close below the 156.50 support zone could open the doors for a larger decline. In the stated case, the pair could decline toward the 155.20 level.

Looking at gold, the bears are in again and they might aim for a move toward the $2,280 support in the near term.

Economic Releases

  • Michigan Consumer Sentiment Index for June 2024 (Prelim) – Forecast 72, versus 69.1 previous.
  • Fed’s Goolsbee speech.
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