Key Highlights
- USD/JPY remained supported above 156.40 and climbed higher.
- It cleared a bullish flag pattern with resistance at 157.35 on the 4-hour chart.
- EUR/USD declined heavily and traded below 1.1300.
- The US nonfarm payrolls could change by 90K in Sep 2026.
USD/JPY Technical Analysis
The US Dollar found bids near 156.40 against the Japanese Yen. USD/JPY formed a base and started a fresh increase above 157.00.
Looking at the 4-hour chart, the pair cleared a bullish flag pattern with resistance at 157.35. There was a clear move above the 61.8% Fib retracement level of the downward move from the 159.03 swing high to the 156.37 low.
The pair even settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). If the bulls remain in action, they could aim for a move above the 159.03 high.
The first major resistance might be near the 1.236 Fib extension level of the downward move from the 159.03 swing high to the 156.37 low at 159.66. The next key resistance could be near 160.40 or 160.65.
A close above 160.65 could result in a fresh rally. In the stated case, the bulls could aim for a move to 162.00. If there is another pullback, the pair might find support near the 200 simple moving average (green, 4-hour) at 157.40.
The first major support might be 156.40 and the 100 simple moving average (red, 4-hour). A close below 156.40 might accelerate the decline. In the stated case, the pair might drop to 155.00.
Looking at EUR/USD, the bears took control, pushed the pair below 1.1300, and they might aim for more downside.
Upcoming Key Economic Events:
- US nonfarm payrolls for Sep 2026 – Forecast 90K, versus 162K previous.
- US Unemployment Rate for Sep 2026 – Forecast 4.1%, versus 4.1% previous.
