(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=');

Aayush Jindal

Key Highlights

  • USD/JPY is facing a strong resistance near the 130.00 zone.
  • A crucial bearish trend line is forming with resistance near $129.80 on the 4-hours chart.
  • Yesterday, gold price and crude oil price saw a strong bearish reaction.
  • The US nonfarm payrolls could increase 185K in Jan 2023, down from 223K.

USD/JPY Technical Analysis

The US Dollar attempted an upside break above the 130.50 resistance against the Japanese Yen. However, USD/JPY failed to settle above 130.50 and started a fresh decline.

Looking at the 4-hours chart, the pair declined below the 130.00 and 129.20 support levels. There was also a close below the 130.00 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

It tested the 128.00 zone and started a consolidation phase. On the upside, the pair is facing resistance near 129.50 and the 100 simple moving average (red, 4-hours).

The first major resistance is near the 130.00 level. There is also a crucial bearish trend line forming with resistance near $129.80 on the same chart. A clear move above the 130.00 resistance might start a steady increase towards the 135.50 resistance zone.

Any more gains could open the doors for a move towards the 131.20 level. The next key hurdle is near 132.00, above which the pair could climb towards the 133.50 resistance zone.

On the downside, there is a key support at 128.00. The next major support sits near the 127.40 level. Any more losses might open the doors for a move towards the 126.00 support zone.

Looking at gold price, there was a strong bearish reaction after the bulls failed to keep the price above the $1,950 resistance zone.

Economic Releases

  • Germany’s Services PMI for Jan 2023 - Forecast 50.4, versus 50.4 previous.
  • Euro Zone Services PMI for Jan 2023 – Forecast 50.7, versus 50.7 previous.
  • UK Services PMI for Jan 2023 – Forecast 48.0, versus 48.0 previous.
  • US Services PMI for Jan 2023 – Forecast 50.3, versus 49.6 previous.
  • US nonfarm payrolls for Jan 2023 – Forecast 185K, versus 223K previous.
  • US Unemployment Rate for Jan 2023 - Forecast 3.6%, versus 3.5% previous.