USD/JPY Could Hit 140.00, Dollar Gains Strength
- USD/JPY gained pace and rallied to a new multi-year high at 139.39.
- Gold price extended decline and traded below $1,720.
- EUR/USD is now consolidating losses above the parity level.
- Crude oil price spiked to $92 and now correcting losses.
USD/JPY Technical Analysis
The US Dollar started another increase above the 137.50 resistance against the Japanese Yen. USD/JPY surged above the 138.00 level and traded to a new multi-year high.
Looking at the 4-hours chart, the pair even climbed above the 139.00 level. It traded as high as 139.39 and settled well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The pair is now consolidating gains near the 139.00 zone. An immediate support on the downside is near the 138.50 level. There is also a key bullish trend line forming with support near 138.50 on the same chart.
If there is a downside break, the pair could decline towards the 137.75 support level. Any more losses could lead the pair towards the 136.80 level.
On the upside, the pair is facing resistance near the 139.20 zone. The main hurdle is near the 139.40 level. A clear move above the 139.40 zone could set the pace for a move towards 140.00. Any more gains may perhaps open the doors for a move towards the 142.00 resistance.
Looking at EUR/USD, the pair found support near the parity level and started a consolidation phase. Similarly, GBP/USD dived to 1.1800 and now correcting losses.
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