(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

USD/JPY Extends Rally, Can It Reach 150?

Article background

Aayush Jindal

Key Highlights

  • USD/JPY is rising above the 142.00 resistance.
  • A connecting bullish trend line is forming with support near 143.80 on the 4-hour chart.
  • EUR/USD is recovering losses and trading well above 1.0950.
  • Crude oil prices are struggling to surpass $85.

USD/JPY Technical Analysis

The US Dollar started a fresh increase above the 140.00 pivot level against the Japanese Yen. USD/JPY broke the 142.50 resistance to enter further into a positive zone.

Looking at the 4-hour chart, the pair settled above the 142.50 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

There was also a spike above the 144.00 level. The pair traded to a new multi-week high and might extend gains above the 145.00 level. The next major resistance is near the 146.20 level. A close above the 146.20 resistance could push the pair toward 148.00. Any more gains could start a fresh increase toward the 150.00 level.

Initial support is near the 143.80 level. There is also a connecting bullish trend line forming with support near 143.80 on the same chart.

The next major support is near 143.00, below which USD/JPY could gain bearish momentum. In the stated case, the pair could test the 142.00 support.

Looking at EUR/USD, the pair started an upside correction and was able to clear the 1.1000 resistance zone.

Economic Releases

  • UK GDP for Q2 2023 (Preliminary) (QoQ) - Forecast 0%, versus +0.1% previous.
  • UK Industrial Production for June 2023 (MoM) - Forecast +0.1%, versus -0.6% previous.
  • UK Manufacturing Production for June 2023 (MoM) - Forecast +0.2%, versus -0.2% previous.
Great