- USD/JPY started a downside correction from well above 130.00.
- It broke a major bullish trend line with support near 129.40 on the 4-hours chart.
- EUR/USD started an upside correction above 1.0550, and GBP/USD surpassed 1.2500.
- Gold price recovered and climbed above the $1,825 resistance zone.
USD/JPY Technical Analysis
The US Dollar started a downside correction after a strong rally above 130.00. USD/JPY declined below the 129.50 support to move into a short-term bearish zone.
Looking at the 4-hours chart, the pair traded below the 129.20 support zone and the 100 simple moving average (red, 4-hours). There was also a break below a major bullish trend line with support near 129.40 on the same chart.
The pair even traded below the 76.4% Fib retracement level of the upward move from the 126.94 swing low to 131.34 high.
It even spiked below 127.20 and the 200 simple moving average (green, 4-hours). The next key support is near 126.80. A clear move below the 126.80 level could stage a strong decline in the near term.
If there is another increase, the pair might face resistance near the 128.50 level. The next major resistance is near the 129.20 level. A clear move above the 129.20 level might push the pair towards the key 130.00 resistance zone.
Looking at EUR/USD, the pair started a fresh increase and was able to clear the 1.0550 resistance. Similarly, GBP/USD was able to surpass the 1.2500 resistance.
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