USD/JPY Forms Double Top, Risk of More Losses
- USD/JPY started a fresh decline from the 131.35 resistance zone.
- It broke a key bullish trend line with support near 130.10 on the 4-hours chart.
- EUR/USD extended decline below 1.0500, and GBP/USD fell below 1.2250.
- Gold price is showing bearish signs below $1,880.
USD/JPY Technical Analysis
The US Dollar struggled to clear 131.35 on two occasions against the Japanese Yen. USD/JPY formed a double top pattern and started a fresh decline below 130.00.
Looking at the 4-hours chart, the pair traded below the key 129.50 support and the 100 simple moving average (red, 4-hours). There was a clear move below a key bullish trend line with support near 130.10.
The pair even traded below the 61.8% Fib retracement level of the upward move from the 126.91 swing low to 131.35 high. If the bears remain in action, the pair might decline towards the 127.00 level or the 200 simple moving average (green, 4-hours).
The next major support is near the 126.20 level. Any more losses may perhaps push USD/JPY towards the 125.50 level.
On the upside, an initial resistance is forming near the 129.20 level. The next major resistance is near the 129.50 zone and the 100 simple moving average (red, 4-hours). A clear move above the 129.50 and 130.00 levels might push the pair towards the key 131.35 resistance zone.
Looking at EUR/USD, the pair remained in a bearish zone and extended decline below the 1.0500 support. Similarly, GBP/USD declined below the 1.2250 support.
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