- USD/JPY started a fresh increase above the 111.00 resistance.
- A key bullish trend line is forming with support near 111.55 on the 4-hours chart.
- EUR/USD is showing bearish signs below the 1.1600 level.
- GBP/USD is facing resistance near the key 1.3650 zone.
USD/JPY Technical Analysis
The US Dollar formed a base above the 111.00 level and started a fresh increase against the Japanese Yen. USD/JPY broke the 111.50 resistance to move further into a positive zone.
Looking at the 4-hours chart, the pair gained pace after it settled above the 111.20 level. There was a close above the 111.50 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The recent low was formed near 110.81 before it started a fresh increase. The pair is now trading above the 111.50 and 111.60 levels.
There is also a key bullish trend line forming with support near 111.55 on the same chart. On the upside, the pair is facing a major hurdle near the 112.00 level. A clear break above the 112.00 level could open the doors for a larger increase.
The next major resistance is near the 112.40 level. Any more gains might set the pace for a move towards the 113.20 level.
An initial support on the downside is near the 111.50 level and the trend line. The next key support is near 111.20, below which the pair may possibly continue lower. In the stated case, the price could test the 110.40 level.
Looking at EUR/USD, the pair is slowly moving lower and it seems like there is a risk of a move towards the 1.1500 level in the near term.
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