USD/JPY Rally Faces Hurdle, US NFP Next
- USD/JPY started a fresh increase towards the 116.50 level.
- A major bullish trend line is forming with support near 115.60 on the 4-hours chart.
- EUR/USD is consolidating below the main 1.1380 resistance zone.
- The US nonfarm payrolls could increase 400K in Dec 2021, up from 210K.
USD/JPY Technical Analysis
The US Dollar started a major increase above the 114.50 resistance against the Japanese Yen. USD/JPY even broke the 115.00 level to move into a positive zone.
Looking at the 4-hours chart, the pair settled above the 115.00 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The pair even climbed above the 115.50 and 116.00 levels. It traded as high as 116.34 before it started a downside correction. It tested the 23.6% Fib retracement level of the upward move from the 113.13 swing low to 116.34 high.
There is also a major bullish trend line forming with support near 115.60 on the same chart. The next major support is near the 114.75 level.
The 50% Fib retracement level of the upward move from the 113.13 swing low to 116.34 high is near the 114.75 level. Any more losses might send the pair towards the 114.00 level.
On the upside, the pair is facing resistance near 116.40 and 116.50. The next major resistance is near the 1.3620 level. A close above 1.3620 could open the doors for a steady increase.
On the downside, an immediate support is near the 1.3480 level. There is also a key rising channel forming with support near 1.3475 on the same chart.
Looking at EUR/USD, the pair is still consolidating below the 1.1380 resistance zone. Besides, GBP/USD remained well bid near the 1.3500 level.
- Euro Zone CPI for Dec 2021 (YoY) (Prelim) - Forecast +4.7%, versus +4.9% previous.
- Euro Zone Core CPI for Dec 2021 (YoY) (Prelim) - Forecast +2.5%, versus +2.6% previous.
- US nonfarm payrolls for Dec 2021 – Forecast 400K, versus 210K previous.
- US Unemployment Rate for Dec 2021 - Forecast 4.1%, versus 4.2% previous.
- Canada’s employment Change payrolls for Dec 2021 – Forecast 27.5K, versus 153.7K previous.
- Canada’s Unemployment Rate for Dec 2021 - Forecast 6.0%, versus 6.0% previous.