Aayush Jindal
Key Highlights
- USD/JPY started a fresh decline below the 144.00 level.
- A connecting bullish trend line is forming with support at 143.40 on the 4-hour chart.
- EUR/USD is now gaining pace and might clear the 1.1500 resistance zone.
- GBP/USD is also rising and testing the 1.3600 resistance.
USD/JPY Technical Analysis
The US Dollar started a fresh decline from 145.50 against the Japanese Yen. USD/JPY declined below the 144.20 and 144.00 support levels.
Looking at the 4-hour chart, the pair settled below the 144.00 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even tested the 142.50 level and recently started a recovery wave.
The bulls pushed the pair above the 143.20 and the 50% Fib retracement level of the downward move from the 144.38 swing high to the 142.52 low.
On the upside, the pair could face resistance near the 144.00 level. The next key resistance sits near the 144.40 level. The first major resistance sits at 145.00. A close above the 145.00 level could set the pace for another increase.
In the stated case, the pair could even clear the 145.50 resistance. The next major stop for the bulls could be near the 146.20 resistance.
On the downside, immediate support sits near the 143.50 level. There is also a connecting bullish trend line forming with support at 143.40 on the same chart. The next key support sits near 143.00. Any more losses could send the pair toward the 142.50 pivot level in the near term. The main support could be near 141.50.
Looking at EUR/USD, the pair started another increase, but the bulls seem to be facing hurdles near the 1.1480 level.
Upcoming Economic Events:
- US nonfarm payrolls for May 2025 – Forecast 130K, versus 177K previous.
- US Unemployment Rate for May 2025 - Forecast 4.2%, versus 4.2% previous.
