USD/JPY Could Start Fresh Rally Above 146.00
- USD/JPY started a fresh increase above the 144.50 resistance.
- It broke a key declining channel with resistance near 144.80 on the 4-hours chart.
- EUR/USD started a fresh decline after it failed to clear the 1.0000 resistance.
- The US nonfarm payrolls could increase 250K in Sep 2022, down from 315K.
USD/JPY Technical Analysis
The US Dollar remained well bid above the 142.00 zone against the Japanese Yen. USD/JPY formed a base and started a fresh increase above the 142.50 resistance.
Looking at the 4-hours chart, the pair was able to climb above the 143.20 and 144.00 resistance levels. There was a clear move above the 50% Fib retracement level of the downward move from the 145.90 swing high to 140.33 low.
Besides, there was a break above a key declining channel with resistance near 144.80 on the same chart. The pair is now trading above the 144.50 resistance and the 100 simple moving average (red, 4-hours).
An immediate resistance is near the 145.40 level. The next major resistance is near the 146.00 level. A clear move above the 146.00 level might send the pair towards the 147.50 level.
The next major hurdle could be near the 148.00 level. On the downside, an initial support is near the 144.20 level. The main support sits at the 143.50 level. A downside break below the 143.50 zone might send the pair towards the 142.50 level.
The next major support is near the 141.20 level, below which the pair could even test the 140.00 support zone.
Looking at EUR/USD, the pair failed to clear the key 1.0000 resistance zone and started a downside correction.
- US nonfarm payrolls for Sep 2022 – Forecast 250K, versus 315K previous.
- US Unemployment Rate for Sep 2022 - Forecast 6.8%, versus 7.0% previous.
- Canada’s employment Change payrolls for Sep 2022 – Forecast 20K, versus -39.7K previous.
- Canada’s Unemployment Rate for Sep 2022 - Forecast 5.4%, versus 5.4% previous.