- USD/JPY started a downside correction from the 114.65 zone.
- It broke a key bullish trend line with support near 113.85 on the 4-hours chart.
- EUR/USD is attempting a major upside break above 1.1660.
- GBP/USD could accelerate higher if it clears the 1.3800 resistance.
USD/JPY Technical Analysis
The US Dollar extended its increase above 114.00 against the Japanese Yen. USD/JPY tested 114.65 before it started a downside correction.
Looking at the 4-hours chart, the pair traded below the 114.00 support zone. The pair even traded below the 113.80 level, but the pair remained stable above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
It tested the 38.2% Fib retracement level of the upward move from the 110.81 swing low to 114.67 high. The pair is now holding the 113.50 support and the 100 SMA.
On the downside, there is a decent support forming near 113.50 level. The next major support is near 112.75. It is near to the 50% Fib retracement level of the upward move from the 110.81 swing low to 114.67 high. A close below the 112.75 level might push the pair towards the 112.00 support.
On the upside, an immediate resistance is near the 113.80 level. The next major resistance is near the 114.00 level, above which the pair might rise towards the 114.65 level.
Looking at EUR/USD, the pair is attempting a major upside break above the 1.1650 and 1.1660 resistance levels. The next key resistance is near 1.1720.
- Euro Zone CPI for Oct 2021 (YoY, Preliminary) - Forecast +3.7%, versus +3.4% previous.
- Euro Zone Core CPI for Oct 2021 (YoY, Preliminary) - Forecast +1.9%, versus +1.9% previous.
- US Personal Income for April 2021 (MoM) - Forecast -0.2%, versus +0.2% previous.