Aayush Jindal
Key Highlights
- USD/JPY extended gains and traded above 161.50.
- A key bullish trend line is forming with support at 161.20 on the 4-hour chart.
- Bitcoin declined sharply to a new multi-week low below $60,000.
- EUR/USD could continue to move down if it stays below 1.1500.
USD/JPY Technical Analysis
The US Dollar remained supported above 159.20 against the Japanese Yen. USD/JPY extended gains and traded above 160.50 to enter a positive zone.
Looking at the 4-hour chart, the pair settled well above 161.20, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bulls even pushed it toward 162.00.
A high was formed at 161.92, and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 159.54 swing low to the 161.92 high. There is also a key bullish trend line forming with support at 161.20.
If there is another bullish wave, USD/JPY could face resistance at 162.00. The next major resistance might be 162.50. A close above 162.50 could open the doors for a larger increase. In the stated case, the bulls could aim for a move to 164.00.
On the other hand, if there is a downside correction, the pair could find bids near 161.50. The first major support could be near the trend line at 161.20.
A downside break and close below the trend line might send the pair toward the 50% Fib retracement level of the upward move from the 159.54 swing low to the 161.92 high at 160.75. Any more losses could open the doors for a test of 160.00.
Looking at Bitcoin, the bears remained in action, pushed the price below $60,000, and might remain in control in the near term.
Upcoming Key Economic Events:
- Fed's Williams speech.
- Fed's Kashkari speech.
- Michigan Consumer Sentiment Index for June 2026 – Forecast 50.0, versus 48.9 previous.
