USD/JPY Hesitates, But Further Gains Seem Likely
- USD/JPY gained bullish momentum above the 110.00 resistance zone.
- A key bullish trend line is forming with support near 109.55 on the 4-hours chart.
- EUR/USD declined heavily below the 1.2000 support zone.
- GBP/USD gained bearish momentum below the 1.4080 and 1.4000 support levels.
USD/JPY Technical Analysis
The US Dollar started a strong increase from the 109.80 support zone against the Japanese Yen. USD/JPY broke the 110.00 and 110.20 resistance levels to move further into a bullish zone.
Looking at the 4-hours chart, the pair gained bullish momentum after it cleared the 110.00 zone. It settled nicely above the 110.20 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It even traded above 110.80 and formed a high at 110.82. Recently, there was a minor downside correction from the 110.82 high. On the downside, there is a major support forming near the 110.20 and 110.15 levels.
The next major support is near 110.00. There is also a key bullish trend line forming with support near 109.55 on the same chart. The trend line is close to the 100 SMA. Any more losses might put a lot of pressure on the bulls and USD/JPY could even trade below the 200 SMA.
On the upside, an immediate resistance is near the 110.50 level. The next major resistance is near the 110.80 level, above which the pair could aim a test of 112.00 in the near term.
Looking at EUR/USD, the pair started a major decline below 1.2000 after it failed to recover above 1.2150. Similarly, GBP/USD declined heavily below the 1.4080 and 1.4000 support levels.
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