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USD/JPY Turns Red, Oil Price Takes Major Hit

Key Highlights

  • USD/JPY started a fresh decline below the 135.00 support.
  • It could extend losses below the 131.50 support zone.
  • Crude oil price declined heavily and traded below $68.
  • Gold price remains supported above the $1,910 support zone.

 

USD/JPY Technical Analysis

The US Dollar struggled to stay in a positive zone above 136.00 against the Japanese Yen. USD/JPY traded below the 135.00 support to move into a bearish zone.

Looking at the 4-hours chart, the pair gained pace below the 134.20 support zone and the 100 simple moving average (red, 4-hours). Besides, the pair broke a key bullish trend line with support at 136.00.

Finally, the pair settled below the 133.50 support zone and the 200 simple moving average (green, 4-hours). On the downside, an immediate support is near the 131.50. The next major support is near the 130.50 level, below which there is a risk of a move towards the 129.20 level.

On the upside, an immediate resistance is near the 132.50 level. The next major resistance is near the 133.50 level and the 200 simple moving average (green, 4-hours).

A clear move above the 133.50 resistance might start another increase towards the 135.00 zone. Any more gains might send the pair towards 136.50.

Looking at crude oil price, there was a sharp decline below the $70 support and there is a risk of more downsides in the near term.

Economic Releases

  • US Industrial Production for Feb 2023 (MoM) – Forecast 0.2%, versus 0% previous.
  • US Capacity Utilization for Feb 2023 – Forecast 78.4%, versus 78.3% previous.