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USD/JPY Turns Red, Can It Start Recovery Wave?

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Aayush Jindal

Key Highlights

  • USD/JPY extended losses below the 157.50 support zone.
  • A key bearish trend line is forming with resistance at 157.80 on the 4-hour chart.
  • EUR/USD rallied and tested the 1.0950 resistance zone.
  • Bitcoin could aim for more upsides if it clears the $66,000 resistance zone.

USD/JPY Technical Analysis

The US Dollar remained in a bearish zone below the 158.80 level against the Japanese Yen. USD/JPY traded below the 157.20 support zone and extended losses.

Looking at the 4-hour chart, the pair settled below the 157.20 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even spiked below the 155.50 support zone.

It tested the 155.35 zone and recently corrected some losses. There was a move above the 155.80 level. If there is a recovery wave, the pair could face resistance near the 157.20 level.

The next resistance sits at 157.50. There is also a key bearish trend line forming with resistance at 157.80 on the same chart. The main hurdle sits at 158.00. A clear move above the 158.00 resistance might send it toward the 158.80 level.

Any more gains might open the doors for a test of the 159.50 zone in the coming days. Immediate support is near the 155.80 level.

The next major support is near the 155.50 level. A downside break and close below the 155.50 support zone could open the doors for more losses. In the stated case, USD/JPY might decline toward the 154.20 level.

Looking at Bitcoin, the price seems to be consolidating gains. There could be a fresh increase if there is a close above $65,500 and $66,000.

Economic Releases

  • Fed's Williams speech.
  • Fed's Bostic speech.
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