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USD/JPY Fight for Momentum: Can Bulls Break Through?

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Aayush Jindal

Key Highlights

  • USD/JPY extended losses and tested the 146.20 support.
  • It now faces hurdles near 147.80 and 148.50 on the 4-hour chart.
  • EUR/USD struggled to continue higher above the 1.1740 pivot zone.
  • GBP/USD revisited the key resistance at 1.3590.

USD/JPY Technical Analysis

The US Dollar started a fresh decline from 148.50 against the Japanese Yen. USD/JPY traded below a key bullish trend line and 146.80.

Looking at the 4-hour chart, the pair tested the 146.20 zone and recently started a recovery wave. There was a move above the 146.50 and 146.70 levels. The pair climbed above the 38.2% Fib retracement level of the downward move from the 148.51 swing high to the 146.21 low.

On the upside, the pair now faces resistance near the 100 simple moving average (red, 4-hour) at 147.80. The next key resistance sits near 148.00. A close above 148.00 could set the pace for another increase.

In the stated case, the pair could rise toward 148.50, above which the bulls could aim for a move toward 148.80. If the pair fails near 147.80, there could be another decline.

On the downside, immediate support is 146.50. The next key support sits at 146.20. Any more losses could send the pair toward the 145.50 support zone.

Looking at EUR/USD, the pair started a recovery wave above 1.1650, but the bears were active above the 1.1720 level.

Upcoming Key Economic Events:

  • US Retail Sales for July 2025 (MoM) – Forecast +0.5%, versus +0.6% previous.
  • Michigan Consumer Sentiment Index for Aug 2025 (Prelim) – Forecast 62.0, versus 61.7 previous.
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