Key Highlights
- USD/JPY started a fresh decline below the 155.50 support zone.
- A connecting bearish trend line is forming with resistance at 154.80 on the 4-hour chart.
- EUR/USD recovered above 1.0400 before the bears appeared again.
- The US nonfarm payrolls could change by 170K in Jan 2025, down from 256K.
USD/JPY Technical Analysis
The US Dollar started a fresh decline below 156.20 against the Japanese Yen. USD/JPY declined below 155.50 and 155.00 to enter a short-term bearish zone.
Looking at the 4-hour chart, the pair settled below the 154.20 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bears seem to be in control and might aim for more losses.
On the downside, immediate support sits near the 151.80 level. The next key support sits near the 151.20 level. Any more losses could send the pair toward the 150.50 level.
On the upside, the pair seems to be facing hurdles near the 152.80 level. The next major resistance is near the 153.80 level. The main resistance is now forming near the 154.00 zone.
There is also a connecting bearish trend line forming with resistance at 154.80 and the 100 simple moving average (red, 4-hour). A close above the 154.80 level could set the tone for another increase. In the stated case, the pair could even clear the 155.50 resistance.
Looking at EUR/USD, the pair was able to recover above the 1.0400 resistance, but the bears are still active below 1.0450.
Upcoming Economic Events:
- US nonfarm payrolls for Jan 2025 – Forecast 170K, versus 256K previous.
- US Unemployment Rate for Jan 2025 – Forecast 4.1%, versus 4.1% previous.
