Key Highlights
- USD/JPY started a fresh increase above the 144.00 resistance.
- It cleared a key bearish trend line with resistance at 143.80 on the 4-hour chart.
- EUR/USD started a downside correction from the 1.1820 zone.
- GBP/USD also corrected some gains and dipped below 1.3650.
USD/JPY Technical Analysis
The US Dollar found support near 142.65 and started a fresh increase against the Japanese Yen. USD/JPY climbed above the 143.50 and 144.00 levels.
Looking at the 4-hour chart, the pair cleared a key bearish trend line with resistance at 143.80. There was a move above the 38.2% Fib retracement level of the downward move from the 148.03 swing high to the 142.68 low.
The pair settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the upside, the pair could face resistance near the 145.35 level. The next key resistance sits near the 146.00 level and the 61.8% Fib retracement level of the downward move from the 148.03 swing high to the 142.68 low.
A close above the 136.00 level could set the pace for another increase. In the stated case, the pair could even clear the 146.75 resistance. The next major stop for the bulls could be near the 147.50 resistance.
On the downside, immediate support is near the 144.40 level and the 200 simple moving average (green, 4-hour). The next key support sits near 143.80. Any more losses could send the pair toward the 143.20 support zone.
Looking at EUR/USD, the pair failed to extend gains above the 1.1820 resistance and recently started a consolidation and correction phase.
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