USD/JPY Surges To New 20-Year High, US CPI Next
- USD/JPY extended rally above the 133.50 resistance.
- A key bullish trend line is forming with support near 133.35 on the 4-hours chart.
- EUR/USD could decline below 1.0600, and GBP/USD is struggling below 1.2600.
- The US Consumer Price Index could increase 8.3% in May 2022 (YoY).
USD/JPY Technical Analysis
The US Dollar started a major increase above the 130.00 resistance against the Japanese Yen. USD/JPY surged to a new 20-year high and remains elevated for more gains.
Looking at the 4-hours chart, the pair gained pace after it broke the 132.00 resistance. The pair even settled above the 132.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It traded as high as 134.58 and remains supported for more gains. On the downside, there is a decent support near 133.50.
There is also a key bullish trend line forming with support near 133.35 on the same chart. The next major support sits near the 132.00 level. The main support sits near 131.20, below which there is a risk of a move towards the 130.00 level.
Any more losses might send the pair towards the 128.50 support. On the upside, an immediate resistance is near the 135.00 level.
The next major barrier could be near the 136.20 level, above which USD/JPY could accelerate higher towards the 138.00 resistance. Any more gains might call for a test of 140.00.
Looking at EUR/USD, the pair kept struggling below the 1.0780 resistance and now remains at a risk of a break below 1.0600.
- US Consumer Price Index for May 2022 (MoM) – Forecast +0.7%, versus +0.3% previous.
- US Consumer Price Index for May 2022 (YoY) – Forecast +8.3%, versus +8.3% previous.
- US Consumer Price Index Ex Food & Energy for May 2022 (YoY) – Forecast +5.9%, versus +6.2% previous.
- Canada’s employment Change payrolls for May 2022 – Forecast 30K, versus 15.3K previous.
- Canada’s Unemployment Rate for May 2022 - Forecast 5.2%, versus 5.2% previous.