USD/JPY Starts Corrective Decrease, PMI’s Next
- USD/JPY traded above 114.00 before starting a downside correction.
- A major bullish trend line is forming with support near 113.25 on the 4-hours chart.
- EUR/USD is still struggling to settle above 1.1650 and 1.1665.
- The US Manufacturing PMI could remain strong at 60.3 in Oct 2021 (Preliminary).
USD/JPY Technical Analysis
The US Dollar started a major increase above the 113.00 zone against the Japanese Yen. USD/JPY climbed above 113.50 to move into a positive zone.
Looking at the 4-hours chart, the pair even traded above the 114.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). The pair traded as high as 114.67 before it started a downside correction.
There was a drop below the 114.20 and 114.00 levels. The pair tested the 23.6% Fib retracement level of the upward move from the 110.82 swing low to 114.67 high.
An immediate support is near the 113.40 level. The next major support is near 113.20, below which there is a risk of a larger decline. There is also a major bullish trend line forming with support near 113.25 on the same chart.
On the upside, the pair is facing resistance near 114.20. A close above 114.20 could open the doors for a larger increase. The next key resistance is near the 114.65 level, above which the pair could rise towards 115.50.
Looking at EUR/USD, the pair must settle above the 1.1650 and 1.1660 resistance levels to continue higher. Besides, GBP/USD is showing positive signs above 1.3780.
- Germany’s Manufacturing PMI for Oct 2021 (Preliminary) - Forecast 56.5, versus 58.4 previous.
- Germany’s Services PMI for Oct 2021 (Preliminary) - Forecast 55.0, versus 56.2 previous.
- Euro Zone Manufacturing PMI for Oct 2021 (Preliminary) – Forecast 57.0, versus 58.6 previous.
- Euro Zone Services PMI for Oct 2021 (Preliminary) – Forecast 55.5, versus 56.4 previous.
- UK Manufacturing PMI for Oct 2021 (Preliminary) – Forecast 55.8, versus 57.1 previous.
- UK Services PMI for Oct 2021 (Preliminary) – Forecast 54.5, versus 55.4 previous.
- US Manufacturing PMI for Oct 2021 (Preliminary) – Forecast 60.3, versus 60.7 previous.
- US Services PMI for Oct 2021 (Preliminary) – Forecast 55.1, versus 54.9 previous.