Key Highlights
- USD/JPY started a major increase after it broke the 115.00 resistance.
- A major bullish trend line is forming with support near 118.40 on the 4-hours chart.
- EUR/USD could gain pace if it clears 1.1080, and GBP/USD failed to surpass 1.3200.
- BoE hikes interest rates to 0.75%, following fed’s hike of 0.25%.
USD/JPY Technical Analysis
The US Dollar formed a support base above 114.50 against the Japanese Yen. USD/JPY started a strong increase and broke many hurdles near 116.50.
Looking at the 4-hours chart, the pair gained bullish momentum above the 117.00 resistance. The pair even settled above the 118.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
A new six-year high was formed near 119.12. The pair is now consolidating gains above 118.50. There is also a major bullish trend line forming with support near 118.40 on the same chart. If the pair corrects below the trend line, it could test the 118.00 support.
Conversely, it might continue to rise above the 119.20 level. The next key resistance is near the 119.50 level, above which USD/JPY could test the key 120.00 resistance zone in the near term.
Looking at EUR/USD, the pair might soon attempt to gain pace above 1.1080 and 1.1100. Besides, GBP/USD spiked to test the key 1.3200 resistance zone.
Economic Releases
- US Existing Home Sales for Feb 2022 (MoM) – Forecast -1.0%, versus +6.7% previous.
- Canadian Retail Sales for Jan 2022 (MoM) – Forecast 2.4%, versus -1.8% previous.
- Canadian Retail Sales ex Autos for Jan 2022 (MoM) – Forecast +2.4%, versus -2.5% previous.
