Key Highlights
- USD/JPY nosedived below 156.50 and 155.00.
- It tested 152.00, and any recovery above 154.00 could face hurdles.
- EUR/USD surged above 1.2000 before trimming some gains.
- GBP/USD started a consolidation phase above 1.3760.
USD/JPY Technical Analysis
The US Dollar started a major decline below 158.00 against the Japanese Yen. USD/JPY settled below 157.00 to enter a bearish zone.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 158.00 to start the recent downtrend. It settled below 156.50, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour).
Finally, the pair dived below 153.50 and tested 152.00. A low was formed at 152.09, and the pair is now consolidating losses. Immediate resistance sits near 153.75.
The first key hurdle could be 154.00. The next stop for the bulls might be 154.80, where they could face hurdles. A close above 154.80 could open the doors for more gains. In the stated case, the bulls could aim for a move toward 156.50 and the 200 simple moving average (green, 4-hour).
If there is a fresh decline, the pair might find support near 152.40. The first major area for the bulls might be near 152.00. The main support sits at 150.00, below which the pair could accelerate lower. The next support could be 146.50.
Looking at EUR/USD, the pair extended gains and traded above 1.2000 before the bears appeared and pushed the pair to 1.1950.
Upcoming Key Economic Events:
- US Producer Price Index for Dec 2025 (MoM) – Forecast +0.2%, versus +0.2% previous.
- US Producer Price Index for Dec 2025 (YoY) – Forecast +2.7%, versus +3.0% previous.
- Chicago Purchasing Manager’s Index for Jan 2026 – Forecast 44.0, versus 43.5 previous.
