USD/JPY Holding Key Support Near 104.40
- USD/JPY started a downside correction from the 105.75 resistance.
- There is a key support forming near the 104.40 level on the 4-hours chart.
- EUR/USD is showing positive signs, GBP/USD traded towards 1.3865.
- Oil price remains elevated above the $57.50 level and it could climb above $60.00.
USD/JPY Technical Analysis
The US Dollar failed to extend gains above 105.75 and started a fresh decline against the Japanese Yen. USD/JPY broke the 105.00 support, but it is still above the key 104.40 support.
Looking at the 4-hours chart, the pair formed a short-term top near 105.76 before declining. It broke a connecting bullish trend line at 105.30 level to move into a bearish zone.
The pair even traded below the 50% Fib retracement level of the upward move from the 103.55 low to 105.6 high. However, the pair found a strong support near the 104.40 level and the 100 simple moving average (red, 4-hours).
The 61.8% Fib retracement level of the upward move from the 103.55 low to 105.6 high is also acting as a support. If there are more losses below 104.40, the next support might be 104.00 or the 200 simple moving average (green, 4-hours).
If the pair remains stable above 104.00, it could start a fresh increase. A major resistance is forming near the 105.10 level. There is also a bearish trend line forming near 105.10. A clear break above the 105.10 level could open the doors for a steady increase in the near term.
Looking at EUR/USD, the pair gained pace above the 1.2100 resistance. Similarly, GBP/USD climbed above 1.3850 before correcting lower.
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