Key Highlights
- USD/JPY corrected gains and tested the 155.75 support.
- A declining channel is forming with resistance at 156.50 on the 4-hour chart.
- Bitcoin started a recovery wave above $90,000.
- EUR/USD is consolidating below the 1.1620 resistance.
USD/JPY Technical Analysis
The US Dollar failed to continue higher above 158.00 and corrected gains against the Japanese Yen. USD/JPY dipped below 157.00 before the bulls appeared.
Looking at the 4-hour chart, the pair tested the 50% Fib retracement level of the upward move from the 153.61 swing low to the 157.89 high. The pair started a consolidating phase above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
Immediate resistance sits near 156.50. There is also a declining channel forming with resistance at 156.50. A close above the channel barrier could start a fresh surge.
The first key hurdle sits at 157.25. The next area of interest for the bulls could be 157.50. Any more gains could set the pace for a steady increase toward 158.00.
On the downside, there is key support at 155.75. The next support is 155.25 or the 61.8% Fib retracement level of the upward move from the 153.61 swing low to the 157.89 high, below which the pair could start a steady decline to 154.60.
Looking at EUR/USD, the pair remains in a positive zone, but it must surpass 1.1620 to start a decent increase.
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