Aayush Jindal
Key Highlights
- USD/JPY declined and tested the 146.60 support zone
- It cleared a key bearish trend line with resistance near 147.20 on the 4-hour chart.
- EUR/USD is showing a few bearish signs and might decline again to 1.1620.
- Bitcoin extended gains and rallied above $118,000.
USD/JPY Technical Analysis
The US Dollar declined heavily below 148.00 against the Japanese Yen before the bulls appeared. USD/JPY tested 146.60 and recently corrected some losses.
Looking at the 4-hour chart, the pair cleared a key bearish trend line with resistance near 147.20. The pair even spiked above the 23.6% Fib retracement level of the downward move from the 149.95 swing high to the 146.58 low.
Immediate resistance could be 147.65. A clear move above 147.65 could send the pair toward the 148.00 resistance and the 100 simple moving average (red, 4-hour).
The main hurdle could be near the 200 simple moving average (green, 4-hour) and the 50% Fib retracement level of the downward move from the 149.95 swing high to the 146.58 low at 148.25.
A close above 148.25 could open the doors for a fresh increase. If not, USD/JPY could decline again. On the downside, there is key support at 146.80.
The next area of interest might be 146.60. The main support could be 146.20. Any more losses might increase selling pressure and send the pair toward 141.50.
Looking at EUR/USD, the pair attempted to recover, but the bears are still active below the 1.1780 resistance level.
Upcoming Key Economic Events:
US ISM Services Index for Sep 2025 – Forecast 51.7, versus 52 previous.
US nonfarm payrolls for Sep 2025 – Forecast 50K, versus 22K previous.
US Unemployment Rate for Sep 2025 - Forecast 4.3%, versus 4.3% previous.
