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USD/JPY Dips From New 24-Year High, Support Nearby

Aayush Jindal

Aayush Jindal

Key Highlights

  • USD/JPY rallied to a new 24-year high at 136.70.
  • A connecting resistance trend line is in place at 137.00 on the 4-hours chart.
  • Gold price could gain strength above the $1,850 resistance.
  • EUR/USD must clear 1.0600 to start a decent increase.

 

USD/JPY Technical Analysis

The US Dollar remained in a strong uptrend above 130.00 against the Japanese Yen. USD/JPY gained strength above the 132.50 resistance and extended rally.

Looking at the 4-hours chart, the pair even broke the 135.00 resistance zone. It traded to a new 24-year high at 136.70, and settled above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

The pair is now correcting gains and trading below 135.50. There was a move below the 38.2% Fib retracement level of the recent rally from the 131.48 swing low to 136.70 high.

On the downside, there is a major support near the 133.60 level and the 100 simple moving average (red, 4-hours). It coincides with the 61.8% Fib retracement level of the recent rally from the 131.48 swing low to 136.70 high.

On the upside, an immediate resistance is near the 135.50 level. The main resistance is now near a connecting resistance trend line at 137.00 on the same chart.

A clear move above the 137.00 level might push the pair towards the 140.00 level in the near term.

Looking at EUR/USD, the pair is consolidating below the 1.0600 level and might aim an upside break in the coming sessions.

Economic Releases

  • UK Retail Sales for May 2022 (YoY) - Forecast -4.5%, versus -4.9% previous.
  • UK Retail Sales for May 2022 (MoM) - Forecast -0.7%, versus +1.4% previous.
  • German IFO Business Climate Index for June 2022 – Forecast 92.9, versus 93 previous.