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Aayush Jindal

Key Highlights

  • USD/JPY started a fresh increase above the 156.00 resistance.
  • It broke a major contracting triangle with resistance at 156.10 on the 4-hour chart.
  • Gold price declined heavily and moved in the red zone below $2,380.
  • Oil prices are still struggling to recover above the $80.00 resistance.

USD/JPY Technical Analysis

The US Dollar formed a base above 153.50 and started a decent increase against the US Dollar. USD/JPY broke the 154.80 and 155.50 resistance levels to move into a positive zone.

Looking at the 4-hour chart, the pair even settled above the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour). The pair broke a major contracting triangle with resistance at 156.10.

There was also a move above the last swing high at 156.78. On the upside, the first major resistance is near 157.50. A clear move above the 157.50 resistance might send it toward the 158.50 level.

Any more gains might call for a move toward the 160.00 level in the near term. If there is no move above the 157.50 resistance, the pair might correct gains.

Immediate support is near the 156.50 level. The next major support is at 156.20. If there is a downside break below the 156.20 support, the pair might test the 100 simple moving average (red, 4-hour) at 155.50. Any more losses might send the pair toward the 154.20 level.

Looking at Gold, the bears took control and there was a sharp decline below the $2,380 support zone. The next major support sits at $2,300.

Economic Releases

  • US Durable Goods Orders for April 2024 – Forecast -0.8% versus +2.6% previous.
  • US Durable Goods Orders ex Defense for April 2024 – Forecast -0.4% versus +2.3% previous.
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