Aayush Jindal
Key Highlights
- USD/JPY is attempting a fresh increase from the 141.65 support zone.
- A major bearish trend line is forming with resistance at 150.00 on the 4-hour chart.
- Oil prices might struggle to climb above the $76.60 resistance.
- EUR/USD corrected gains but the bulls seem to be active above 1.0850.
USD/JPY Technical Analysis
The US Dollar started a major decline from well above 155.00 against the Japanese Yen. USD/JPY even declined below 145.00 before the bulls appeared.
Looking at the 4-hour chart, the pair settled below the 150.00 level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). A low was formed near 141.68 before the pair started a recovery wave.
There was a move above the 145.00 level. The pair cleared the 38.2% Fib retracement of the downward move from the 155.21 swing high to the 141.68 low.
Immediate resistance sits near the 148.50 level or the 50% Fib retracement of the downward move from the 155.21 swing high to the 141.68 low. The next resistance sits at 150.00. There is also a major bearish trend line forming with resistance at 150.00 on the same chart.
A clear move above 150.00 could open the door to more gains. In the stated case, the pair could rise and test 152.00 or the 100 simple moving average (red, 4-hour).
Immediate support is near the 145.80 level. The next major support is near the 144.00 level. A downside break and close below the 144.00 support zone could open the doors for more losses. In the stated case, USD/JPY might decline toward the 142.00 level.
Looking at Oil, the price started a recovery wave above the $74.50 level but the bears might remain active near the $76.60 level.
Economic Releases
- Canada’s employment Change payrolls for July 2024 – Forecast 22.5K, versus -1.4K previous.
- Canada’s Unemployment Rate April 2024 - Forecast 6.5%, versus 6.4% previous.
