Aayush Jindal
Key Highlights
- USD/JPY formed a base above 146.20 and recovered some losses.
- It cleared a key contracting triangle with resistance at 147.50 on the 4-hour chart.
- EUR/USD could react to the downside if it stays below 1.1720 for a long time.
- Gold could eye a fresh upward move if it settles above $3,365.
USD/JPY Technical Analysis
The US Dollar remained supported above 146.50 against the Japanese Yen. USD/JPY formed a base and recovered above the 147.00 resistance zone.
Looking at the 4-hour chart, the pair cleared a key contracting triangle with resistance at 147.50. The pair even climbed above the 23.6% Fib retracement level of the last main decline from the 150.91 swing high to the 146.21 low.
The pair is now consolidating near the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the upside, the pair now faces resistance near 148.00.
The next key resistance sits at 148.50 and the 50% Fib retracement level of the last main decline from the 150.91 swing high to the 146.21 low. A close above 148.50 could set the pace for another increase. In the stated case, the pair could rise toward 149.20, above which the bulls could aim for a move toward 150.00.
On the downside, immediate support is 147.20. The next key support sits at 146.80. Any more losses could send the pair toward the 146.20 support zone.
Looking at EUR/USD, the pair started a consolidating phase and remains below the key barrier at 1.1720.
Upcoming Key Economic Events:
- Fed's Chair Powell speech.
