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USD/JPY Gains Momentum, 115.00 Is The Key

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Aayush Jindal

Key Highlights

  • USD/JPY started a fresh increase from the 112.60 zone.
  • A major bullish trend line is forming with support at 113.60 on the 4-hours chart.
  • EUR/USD is still struggling to clear the 1.1350 resistance.
  • GBP/USD rallied above the 1.3350 and 1.3400 resistance levels.

USD/JPY Technical Analysis

The US Dollar started a fresh increase from the 112.60 zone against the Japanese Yen. USD/JPY gained pace for a move above the 113.20 resistance zone.

Looking at the 4-hours chart, the pair broke the 113.50 resistance zone. There was a close above the 113.50 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

The pair even climbed above the 50% Fib retracement level of the downward move from the 115.52 swing high to 112.53 low.

The next major resistance is near the 114.85 level. It is near the 76.4% Fib retracement level of the downward move from the 115.52 swing high to 112.53 low. Any more gains could send USD/JPY towards the 115.20 level.

If there is a downside correction, an immediate support is near the 113.80 level. There is also a major bullish trend line forming with support at 113.60 on the same chart. Any more losses might send the pair towards the 113.00 level.

Looking at EUR/USD, the pair tried to climb higher but there was no clear upside break above the 1.1350 resistance zone.

Economic Releases

  • None (Christmas Holidays).
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