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USD/JPY Stays Strong: Support Levels Hold Firm

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Aayush Jindal

Key Highlights

  • USD/JPY started a downside correction from the 157.70 zone.
  • A major bullish trend line is forming with support at 156.00 on the 4-hour chart.
  • Gold prices are consolidating above the $2,320 support zone.
  • Bitcoin price could aim for a move above the $70,000 level.

USD/JPY Technical Analysis

The US Dollar started a major increase above the 154.50 resistance against the Japanese Yen. USD/JPY traded toward 158.00 before the bears emerged.

Looking at the 4-hour chart, the pair started a downside correction and traded below 157.20. There was a move below the 23.6% Fib retracement level of the upward move from the 153.59 swing low to the 157.70 high.

However, the pair is now holding gains above the 156.00 zone. There is also a major bullish trend line forming with support at 156.00 on the same chart.

The trend line is near the 38.2% Fib retracement level of the upward move from the 153.59 swing low to the 157.70 high and the 100 simple moving average (red, 4-hour). The main support is near the 155.65 level and the 200 simple moving average (green, 4-hour).

Any more losses might impact the current bullish trend. On the upside, immediate resistance is near the 157.20 zone. The first major resistance is near the 157.50 level.

A clear move above the 157.50 resistance might send it toward the 157.80 level. Any more gains might call for a move toward the 158.00 level in the near term.

Looking at Gold, the bulls are active near the $2,320 level and they might aim for a move toward the $2,400 level in the near term.

Economic Releases

  • US Personal Income for April 2024 (MoM) - Forecast +0.3%, versus +0.5% previous.
  • US Core Personal Consumption Expenditure for April 2024 (MoM) - Forecast +0.3%, versus +0.3% previous.
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