USD/JPY Could Struggle Near 104.00 and 104.20

Key Highlights

  • USD/JPY started an upside correction from the 103.00 support zone.
  • A major resistance is forming near 104.00 and 104.20 on the 4-hours chart.
  • EUR/USD seems to be struggling near 1.2250 and 1.2260.
  • GBP/USD cleared the 1.3500 resistance to continue higher.

 

USD/JPY Technical Analysis

This past week, the US Dollar traded below the key 104.00 support zone against the Japanese Yen. USD/JPY traded as low as 102.87 before it started a decent upside correction.

Looking at the 4-hours, the pair recovered above the 103.00 and 103.50 levels. It even tested the 50% Fib retracement level of the downward move from the 104.57 high to 102.87 low.

However, there are many hurdles on the upside near 103.90 and 104.00. There is also a connecting bearish trend line forming with resistance near 103.95 on the same chart, which is also close to the 100 simple moving average (red, 4-hours).

The 61.8% Fib retracement level of the downward move from the 104.57 high to 102.87 low is also near 103.92. The next major resistance is near the 104.20 level or the 200 simple moving average (green, 4-hours).

A close above the 104.00 and 104.20 levels is must for a convincing upside break. If not, the pair could start a fresh decline below the 103.20 and 103.00 support levels.

Looking at EUR/USD, the pair struggled near 1.2250 and trimmed gains. GBP/USD is showing positive signs and it is now trading well above 1.3500. Besides, gold price is consolidating above the $1,850 support zone.