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USD/JPY Climbs To 150, Bulls Losing Steam

Aayush Jindal

Aayush Jindal

Key Highlights

  • USD/JPY started a major increase and tested the 150.0 barrier.
  • A key bullish trend line is forming with support near 148.80 on the 4-hours chart.
  • EUR/USD might attempt an upside break above the 0.9900 resistance.
  • GBP/USD is showing positive signs and might clear 1.1400.

 

USD/JPY Technical Analysis

The US Dollar gained strength above the 145.00 resistance against the Japanese Yen. USD/JPY even cleared the 148.00 barrier to move further into a positive zone.

Looking at the 4-hours chart, the pair settled well above the 148.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It opened the doors for more upsides and the pair tested the all-important 150.00 level. The pair traded to a new multi-year high and remains supported for more gains. The next major resistance on the upside may perhaps be near 152.00.

If there is a downside correction, the pair might test the 148.80 support. There is also a key bullish trend line forming with support near 148.80 on the same chart.

A downside break below the trend line support may perhaps send USD/JPY towards the 147.50 support. Any more gains could lead the pair towards 145.00 or the 100 simple moving average (red, 4-hours).

Looking at EUR/USD, the pair is consolidating and might soon attempt a key upside break above the 0.9900 resistance zone.

Economic Releases

  • UK Retail Sales for Sep 2022 (MoM) - Forecast -0.5%, versus -1.6% previous.
  • UK Retail Sales for Sep 2022 (YoY) - Forecast -5.0% versus -5.4% previous.
  • Canadian Retail Sales for Aug 2022 (MoM) – Forecast +0.2%, versus -2.5% previous.
  • Canadian Retail Sales ex Autos for Aug 2022 (MoM) – Forecast +0.4%, versus -3.1% previous.