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USD/JPY Faces Uphill Task After Recent Bullish Attempt Fades

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Aayush Jindal

Key Highlights

  • USD/JPY failed to start a fresh increase above 148.00.
  • A key bearish trend line is forming with resistance at 147.80 on the 4-hour chart.
  • EUR/USD could make another attempt to clear the 1.1720 resistance.
  • GBP/USD is gaining pace and might rally if it settles above 1.3550.

USD/JPY Technical Analysis

The US Dollar attempted a fresh increase above 147.50 against the Japanese Yen. USD/JPY failed to settle above 148.00 and trimmed most gains.

Looking at the 4-hour chart, the pair traded below the 50% Fib retracement level of the upward move from the 146.57 swing low to the 148.18 high. The pair even settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

The current price action is bearish below the 61.8% Fib retracement level. On the downside, immediate support is 146.60. The next key support sits at 146.20. Any more losses could send the pair toward the 145.50 support zone.

On the upside, the pair now faces resistance near 147.60. The next key resistance sits at 147.80. There is also a key bearish trend line forming with resistance at 147.80 on the same chart. A close above 147.80 and 148.00 could set the pace for another increase.

In the stated case, the pair could rise toward 148.80, above which the bulls could aim for a move toward 149.20. Any more upsides could send USD/JPY toward 150.00.

Looking at EUR/USD, the pair started a fresh increase, but the bears might again attempt to prevent gains above 1.1720.

Upcoming Key Economic Events:

  • US Personal Income for July 2025 (MoM) - Forecast +0.4%, versus +0.3% previous.
  • US Core Personal Consumption Expenditure for July 2025 (MoM) - Forecast +0.3%, versus +0.3% previous.
  • US Wholesale Inventories for July 2025 (preliminary) – Forecast +0.2%, versus +0.1% previous.
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