- USD/JPY remained stable above 143.50 and eyes a fresh rally.
- It is facing a key declining channel with resistance near 144.65 on the 4-hour chart.
- EUR/USD failed to clear 1.0920 and started another decline.
- The US nonfarm payrolls could change by 225K in June 2023, down from 339K.
USD/JPY Technical Analysis
The US Dollar started a downside correction from 145.00 against the Japanese Yen. USD/JPY tested the 143.50 zone and recently started a fresh increase.
Looking at the 4-hour chart, the pair remained stable above 143.50, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours). The pair tested the 23.6% Fib retracement level of the upward move from the 138.76 swing low to the 145.06 high.
It is now rising and trading above the 144.00 level. It is facing a key declining channel with resistance near 144.65 on the same chart.
The next major resistance is near 145.00. If there is a move above the 145.00 resistance, the pair could rise toward 145.80. Any more gains might send the pair toward the 146.20 level.
Immediate support is near the 143.50 zone. The next major support is near the 142.80 level or the 100 simple moving average (red, 4 hours). If there is a downside break below the 142.80 support, the pair could decline toward the 50% Fib retracement level of the upward move from the 138.76 swing low to the 145.06 high or 142.00.
Looking at EUR/USD, the pair struggled to clear the 1.0920 resistance zone and the bears were able to push it lower once again.
- US nonfarm payrolls for June 2023 – Forecast 225K, versus 339K previous.
- US Unemployment Rate for June 2023 - Forecast 3.6%, versus 3.7% previous.
- Canada’s employment Change for June 2023 – Forecast 20K, versus -17.3K previous.
- Canada’s Unemployment Rate April 2023 - Forecast 5.3%, versus 5.2% previous.