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USD/JPY Extends Losses While Gold Spikes To New ATH

Aayush Jindal

Aayush Jindal

Key Highlights

  • USD/JPY started a fresh decline after the Fed rate hike.
  • It broke a key bullish trend line with support at 134.45 on the 4-hour chart.
  • Gold price surged to a new all-time high at $2,079.84 on TitanFX.
  • The US nonfarm payrolls could change by 179K in April 2023, down from 236K.

 

USD/JPY Technical Analysis

The US Dollar saw strong bullish moves above 136.00 against the Japanese Yen. USD/JPY traded to a new multi-week high at 137.77 before the bears appeared.

Looking at the 4-hour chart, the pair started a downside correction below the 137.50 support. The pair gained bearish momentum after the recent Fed rate hike to 5.25%. The pair declined heavily below the 136.00 support.

It broke a key bullish trend line with support at 134.45 on the 4-hour chart. The pair spiked below the 100 simple moving average (red, 4 hours).

The next major support is near the 133.25 level or the 200 simple moving average (green, 4 hours). If there is a downside break below the 133.25 support, the pair could accelerate lower. In the stated case, the pair might even test 132.00.

Immediate resistance on the upside is near the 134.80 level. The next key resistance is near the 135.40 level. A clear upside break and close above the 135.40 resistance might start a steady increase. The next key resistance is near the 136.00 zone. Any more gains might send the pair toward 137.00.

Looking at Gold price, there was a strong upward move above the $2,050 resistance and the price even traded to a new all-time high at $2,079.84.

Economic Releases

  • US nonfarm payrolls for April 2023 – Forecast 179K, versus 236K previous.
  • US Unemployment Rate for April 2023 - Forecast 6.7%, versus 6.7% previous.
  • Canada’s employment Change for April 2023 – Forecast 20K, versus 34.7K previous.
  • Canada’s Unemployment Rate for April 2023 - Forecast 5.1%, versus 5.0% previous.