USD/JPY Accelerating Losses, Dollar Extends Decline

Key Highlights

  • USD/JPY is trading well below the key 103.80 support zone.
  • There was a break below a key bullish trend line at 103.50 on the 4-hours chart.
  • AUD/USD and NZD/USD extended their upward move and traded to new multi-month highs.
  • Gold price is still facing a major resistance zone near $1,900.

 

USD/JPY Technical Analysis

The US Dollar failed to surpass the 103.80 and 103.90 resistance levels against the US Dollar. USD/JPY started a fresh decline below 103.60 and 103.50.

Looking at the 4-hours chart, the pair clearly faced a strong selling interest near 103.90. It started a fresh decline below 103.50 level, and it remained well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

There was a break below a key bullish trend line at 103.50 on the same chart. The pair even traded below the 61.8% Fib retracement level of the upward move from the 102.87 low to 103.89 high.

It seems like the pair might continue to move down below the 103.10 and 103.00 support levels. The next key support is near the 102.60 zone. It is close to the 1.236 Fib extension level of the upward move from the 102.87 low to 103.89 high.

Any more losses could lead the pair towards the 102.20 level. On the upside, the pair is likely to face a strong selling interest near the 103.50 level.

Looking at EUR/USD, the pair is showing a lot of positive signs above 1.2250. GBP/USD also started a fresh increase and it broke the 1.3550 resistance zone.

Economic Releases

  • US Initial Jobless Claims - Forecast 833K, versus 803K previous.