USD/JPY Starts Fresh Decrease, Key Support at 113.20
- USD/JPY started a fresh decline from well above 116.00.
- It broke a major bullish trend line with support near 115.60 on the 4-hours chart.
- EUR/USD surged above 1.1400, and GBP/USD rallied above the 1.3700.
- The US Initial Jobless Claims increased to 230K in the week ending Jan 08, 2022.
USD/JPY Technical Analysis
This past week, the US Dollar struggled to clear the 116.40 resistance against the Japanese Yen. USD/JPY started a major decline from the 116.34 high and declined below 116.00.
Looking at the 4-hours chart, the pair traded below the key 115.60 support zone. There was a break below a major bullish trend line with support near 115.60 on the same chart.
The pair settled below the 115.20 and the 100 simple moving average (red, 4-hours). There was a break below the 50% Fib retracement level of the upward move from the 113.13 low to 116.34 high.
It even traded below 114.50 and the 200 simple moving average (green, 4-hours). On the downside, an immediate support is near the 113.85 level. It is close to the 76.4% Fib retracement level of the upward move from the 113.13 low to 116.34 high.
The main support is forming near the 113.50 level, below which the pair could drop to 113.00. On the upside, the pair is facing resistance near 114.50 level. The next major resistance is near the 115.00 level, above which the pair could test 115.80.
Looking at EUR/USD, the pair started a major increase after there was a clear move above the 1.1380 and 1.1400 resistance levels. Besides, GBP/USD rallied above the 1.3650 and 1.3700 resistance levels.
- UK Industrial Production for Nov 2021 (MoM) - Forecast +0.2%, versus -0.6% previous.
- UK Manufacturing Production for Nov 2021 (MoM) - Forecast +0.2%, versus 0% previous.
- US Retail Sales for Dec 2021 (MoM) – Forecast 0%, versus +0.3% previous.
- US Industrial Production for Dec 2021 (MoM) – Forecast +0.4%, versus +0.5% previous.