Aayush Jindal
Key Highlights
- USD/JPY started another increase from the 157.50 support.
- A major bullish trend line is forming with support at 158.00 on the 4-hour chart.
- AUD/USD and NZD/USD gained bullish momentum and outperformed other majors.
- Gold started a consolidation phase after trading to a new record high above $4,880.
USD/JPY Technical Analysis
The US Dollar remained stable near 157.50 against the Japanese Yen. USD/JPY formed a base and started a fresh increase above 158.00.
Looking at the 4-hour chart, the pair climbed above 158.20 and the 50% Fib retracement level of the downward move from the 159.45 swing high to the 157.42 low. The pair is now well above the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour).
Immediate resistance sits near 159.00 and the 76.4% Fib retracement level of the downward move from the 159.45 swing high to the 157.42 low. A close above 159.00 could open the doors for a move toward 159.50. Any more gains could set the pace for a steady increase toward 150.00.
If there is no move above 149.00, there could be a fresh downside correction. On the downside, immediate support is near the 158.20 level. The first major area for the bulls might be near 158.00.
There is also a major bullish trend line forming with support at 158.00. A close below 158.00 might spark heavy bearish moves. The next support could be 157.50 or the 100 simple moving average (red, 4-hour), below which the bears might aim for a move toward the 200 simple moving average (green, 4-hour) at 156.80.
Looking at Gold, the price started a consolidation phase, but the bulls might soon aim for more gains above the $4,880 zone.
Upcoming Key Economic Events:
- US S&P Global Manufacturing PMI for Jan 2026 (Preliminary) – Forecast 52.1, versus 51.8 previous.
- US S&P Global Services PMI for Jan 2026 (Preliminary) – Forecast 52.8, versus 52.5 previous.
