USD/JPY Tumbles Below 138, US NFP Report Next
- USD/JPY declined sharply and traded below the 138.00 support.
- A crucial bearish trend line is forming with resistance near 137.80 on the 4-hours chart.
- EUR/USD and GBP/USD gained bullish momentum and traded to new multi-week highs.
- The US nonfarm payrolls could increase 200K in Nov 2022, down from 251K.
USD/JPY Technical Analysis
The US Dollar faced a strong selling interest from the 140.00 zone against the Japanese Yen. USD/JPY started a sharp decline and traded below the 138.00 support.
Looking at the 4-hours chart, the pair settled below the 138.00 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The decline gained pace below the 136.50 level and the pair even spiked below 136.00. The pair is showing bearish signs and remains at a risk of more losses below the 135.20 level. An initial support is near the 135.00 level.
The next major support is near the 134.00 zone. Any more losses might send the pair towards the 132.50 support zone.
On the upside, the pair is facing resistance near the 137.50. The next major resistance may perhaps be near 137.80. There is also a crucial bearish trend line forming with resistance near 137.80 on the same chart.
A clear move above the trend line resistance and then 138.00 might start a decent increase. In the stated case, USD/JPY may perhaps test 138.80. Any more gains could set the pace for a move towards the 140.00 resistance zone.
Looking at EUR/USD, the pair started a fresh increase and was able to clear the 1.0450 resistance zone. Similarly, GBP/USD gained pace and surpassed the 1.2150 resistance.
- US nonfarm payrolls for Nov 2022 – Forecast 200K, versus 251K previous.
- US Unemployment Rate for Nov 2022 - Forecast 3.7%, versus 3.7% previous.
- Canada’s employment Change payrolls for Nov 2022 – Forecast 5K, versus 108.3K previous.
- Canada’s Unemployment Rate for Nov 2022 - Forecast 5.3%, versus 5.2% previous.