USD/JPY Struggles Near 137.00, PMI’s Next
- USD/JPY traded to a new multi-year high at 137.00.
- A short-term bullish trend line is forming with support near 135.30 on the 4-hours chart.
- EUR/USD and GBP/USD extended losses below 1.0480 and 1.2150 respectively.
- The US ISM Manufacturing PMI could decline from 56.1 to 55.0 in June 2022.
USD/JPY Technical Analysis
The US Dollar remained in a strong uptrend above 135.00 against the Japanese Yen. USD/JPY even traded to a new multi-year high at 137.00.
Looking at the 4-hours chart, the pair settled above the 135.00 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
It seems like the bears are putting up a fight near the 137.00 zone. The pair corrected a few points and dipped from the 137.00 high. There was a move below the 136.20 support zone.
On the downside, the 135.20 level is a decent support. There is also a short-term bullish trend line forming with support near 135.30 on the same chart. A downside break below the 135.20 support could send the pair further lower.
The next major support sits near the 134.90 zone and the 100 simple moving average (red, 4-hours). Any more losses might call for a correction towards the 132.50 support zone in the coming days.
On the upside, the pair is facing resistance near the 137.00 zone. The next major resistance sits near the 137.20 level, above which the USD/JPY could rise towards the 138.00 level.
Looking at EUR/USD, the pair declined further below the 1.0480 support. Similarly, GBP/USD broke the 1.2150 support before the bulls appeared.
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- Euro Zone Manufacturing PMI for June 2022 – Forecast 52.0, versus 52.0 previous.
- UK Manufacturing PMI for June 2022 – Forecast 53.4, versus 53.4 previous.
- US Manufacturing PMI for June 2022 – Forecast 52.4, versus 52.4 previous.
- US ISM Manufacturing PMI for June 2022 – Forecast 55.0, versus 56.1 previous.