USD/JPY Eyes More Upsides, US NFP Next
- USD/JPY is consolidating above the 135.00 support.
- A break above 136.50 could spark more upsides.
- EUR/USD extended losses and traded below 1.0250.
- The US nonfarm payrolls could increase 268K in June 2022, down from 390K.
USD/JPY Technical Analysis
The US dollar started a downside correction from the 137.00 high against the Japanese Yen. USD/JPY traded below the 136.50 support, but the bulls were active near 135.00.
Looking at the 4-hours chart, the pair traded as low as 134.74 and remained well bid near the 100 simple moving average (red, 4-hours). It is also well above the 200 simple moving average (green, 4-hours).
The pair is now consolidating well above the 135.00 support. There is also a key bullish trend line forming with support near 135.20 on the same chart.
On the upside, the pair is facing resistance near the 136.50 zone. A clear move above the 136.50 level could send the price towards 137.00. Any more gains may perhaps open the doors for new multi-year high and the price could surge towards 138.50.
If not, USD/JPY might correct lower and revisit 135.00. The main support sits near the 134.50 level. A downside break below the 134.50 support could send the pair further lower. The next major support sits near the 133.20 zone, below which the bears could aim 130.00.
Looking at EUR/USD, the pair extended losses and traded below the key 1.0250 support. If the bears remain in action, the pair might slide to 1.0100.
- US nonfarm payrolls for June 2022 – Forecast 268K, versus 390K previous.
- US Unemployment Rate for June 2022 - Forecast 3.6%, versus 3.6% previous.
- Canada’s employment Change payrolls for June 2022 – Forecast 22.5K, versus 39.8K previous.
- Canada’s Unemployment Rate for June 2022 - Forecast 5.1%, versus 5.1% previous.