Aayush Jindal
Key Highlights
- USD/JPY started a recovery wave from 152.90 and climbed above 154.50.
- A few key hurdles are forming near 156.65 and 157.50 on the 4-hour chart.
- WTI Crude Oil prices dipped after a strong rally and retested $100.
- EUR/USD started a consolidation phase a drop below 1.1500.
USD/JPY Technical Analysis
The US Dollar formed a base above 153.00 against the Japanese Yen. USD/JPY recovered above 154.00 and 154.50 to enter a short-term positive zone.
Looking at the 4-hour chart, the pair surpassed a rising channel with resistance at 155.20. There was a clear move above the 38.2% Fib retracement level of the downward move from the 160.39 swing high to the 152.88 low.
However, the pair struggled just below the 50% Fib retracement level, 156.60, and the 100 simple moving average (red, 4-hour).
The next major resistance might be near the 200 simple moving average (green, 4-hour) at 157.50. A close above 157.50 could start another steady increase. In the stated case, the bulls could aim for a move to 160.00.
If there is another bearish reaction, the pair could revisit 154.65. The first major support could be near 154.00. A close below 154.00 might accelerate the decline. In the stated case, the bears could aim for a move to 153.20.
Looking at WTI Crude Oil prices, the price saw a pullback from $106.75, and it might even decline to test the $96.50 support.
Upcoming Key Economic Events:
- BoJ Press Conference.
- Fed's Bowman speech.
