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USD/JPY Recovery Strengthens As Markets Await Key NFP Catalyst

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Aayush Jindal

Key Highlights

  • USD/JPY started a recovery wave from the 155.00 support zone.
  • A bullish trend line is forming with support at 156.45 on the 4-hour chart.
  • EUR/USD is now at risk of a downside break below 1.1700.
  • The US nonfarm payrolls could change by 62K in April 2026.

USD/JPY Technical Analysis

The US Dollar found support near 155.00 against the Japanese Yen. USD/JPY started a recovery wave above 155.50 and 156.00.

Looking at the 4-hour chart, the pair cleared the 50% Fib retracement level of the downward move from the 157.89 swing high to the 155.03 low. The pair is now trading above the 100 simple moving average (red, 4-hour), but it is still well below the 200 simple moving average (green, 4-hour).

On the upside, the pair faces resistance at 157.00. The first major resistance sits at 157.20 and the 76.4% Fib retracement level of the downward move from the 157.89 swing high to the 155.03 low.

The main resistance could be 158.0. A close above 158.00 could open doors for gains above 158.80. In the stated case, the bulls could aim for a move to 159.20.

Immediate support is seen near 156.40. The next support could be 156.00. A close below 156.00 might push the pair toward 155.50. Any more losses could initiate a fresh move to 152.00 in the coming days.

Looking at EUR/USD, the pair failed to stay above 1.1750 and now remains at risk of more losses below 1.1700.

Upcoming Key Economic Events:

  • US nonfarm payrolls for April 2026 – Forecast 62K, versus 178K previous.
  • US Unemployment Rate for April 2026 - Forecast 4.3%, versus 4.3% previous.
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