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USD/JPY Accelerates Higher and Seems Unstoppable

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Aayush Jindal

Key Highlights

  • USD/JPY extended gains above the 144.00 resistance zone.
  • A key bullish trend line is forming with support near 144.15 on the 4-hour chart.
  • EUR/USD is stuck in a range below the 1.1000 resistance.
  • GBP/USD extended its decline below the 1.2680 support.

USD/JPY Technical Analysis

The US Dollar started a steady increase above the 142.50 resistance against the Japanese Yen. USD/JPY broke many hurdles near 143.50 to move further into a positive zone.

Looking at the 4-hour chart, the pair gained pace above 144.00. It also settled well above the 144.00 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

It seems like the bulls are aiming for more gains above the 145.00 resistance. On the upside, the first major resistance above 145.00 is near the 145.50 zone.

If there is a move above the 145.50 resistance, the pair could rise toward 146.20. Any more gains might send USD/JPY toward the 147.00 level.

Immediate support is near the 144.20 level. There is also a key bullish trend line forming with support near 144.15 on the same chart. The next major support is near the 143.65 level. If there is a downside break below the 143.65 support, the pair could decline toward the 143.00 support.

Looking at EUR/USD, the pair is struggling to clear the 1.1000 resistance zone and there are chances of a downside correction.

Economic Releases

  • UK GDP for Q1 2023 (QoQ) - Forecast +0.1%, versus +0.1% previous.
  • Euro Zone CPI for June 2023 (YoY) - Forecast +5.6%, versus +6.1% previous.
  • Euro Zone CPI for June 2023 (MoM) - Forecast 0%, versus 0% previous.
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