- USD/JPY cleared a major hurdle near the 109.80 level.
- It broke a crucial bearish trend line with resistance near 109.85 on the 4-hours chart.
- EUR/USD corrected higher above 1.1700 and 1.1740.
- GBP/USD climbed higher sharply above the 1.3720 resistance.
USD/JPY Technical Analysis
The US Dollar started a fresh increase from the 109.12 support zone against the Japanese Yen. USD/JPY cleared a couple of important hurdles near 109.50 and 109.80.
Looking at the 4-hours chart, the pair gained pace above the 109.80 resistance. There was a break above a crucial bearish trend line with resistance near 109.85.
The pair surpassed the 110.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). Finally, it spiked above the last swing high at 110.08.
If the pair continues to rise, it could test the 110.30 resistance. It is near the 1.236 Fib extension level of the last decline from the 110.08 swing high to 109.12 low. The main resistance is near the 110.40 level, above which USD/JPY could accelerate higher.
An immediate support is near the 109.80 level and the 100 simple moving average (red, 4-hours). A close below the 109.80 support could put a lot of pressure on the bulls. The main support sits near the 109.12 level.
Looking at EUR/USD, the pair spiked below the 1.1700 level before it recovered above 1.1740. Similarly, GBP/USD jumped above the 1.3700 and 1.3720 resistance levels.
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