Key Highlights
- USD/JPY climbed higher above the 132.50 resistance zone.
- A connecting bullish trend line is forming with support near 134.50 on the 4-hours chart.
- EUR/USD slowly moved below the 1.0620 support zone.
- The US GDP grew 2.7% in Q4 2022 (Prelim), less than the 2.9% forecast.
USD/JPY Technical Analysis
The US Dollar gained strength for a steady increase above the 132.50 resistance against the Japanese Yen. USD/JPY even broke the 133.20 level to move into a positive zone.
Looking at the 4-hours chart, the pair settled above the 133.50 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The upward move was such that the pair even climbed above the 135.00 level. It is now showing positive signs above 134.50. There is also a connecting bullish trend line forming with support near 134.50 on the same chart.
On the downside, an immediate support is near the 134.50 level. The next major support is near the 134.00 level, below which there is a risk of a move towards the 133.30. Any more losses could open the doors for a drop towards 132.50.
On the upside, an immediate resistance is near the 135.50 level. The next major resistance is near the 136.20 level. A clear move above the 136.20 resistance might start a steady increase towards the 138.00 resistance zone. Any more gains could open the doors for a move towards the 140.00 level.
Looking at EUR/USD, the pair slowly declined below 1.0620 and there is a risk of more losses in the coming days.
Economic Releases
- US New Home Sales for Jan 2023 (MoM) – Forecast 2.5% versus 2.3% previous.
- US Personal Income for Jan 2023 (MoM) – Forecast +0.9%, versus +0.2% previous.
