Key Highlights
- USD/JPY started a fresh decline below the 133.50 support zone.
- A major bearish trend line is forming with resistance at 131.80 on the 4-hours chart.
- EUR/USD and GBP/USD rallied above 1.0800 and 1.2220 respectively.
- The US Manufacturing PMI could decline from 47.3 to 47.0 in March 2023 (Preliminary).
USD/JPY Technical Analysis
The US dollar started a fresh decline from well above 134.00 against the Japanese Yen. USD/JPY traded below the 133.50 and 133.00 levels to enter a bearish zone.
Looking at the 4-hours chart, the pair moved below the 132.50 support level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair even traded below the 131.20 support. A low is formed near 130.40 and the pair is now consolidating losses. An immediate resistance on the upside is near the 131.55 level.
The first major resistance is near the 131.80 level. There is also a major bearish trend line forming with resistance at 131.80 on the same chart. The next major resistance is near the 132.20. A clear move above the 132.20 resistance might send the pair towards the 133.00 zone.
Any more gains might send the pair towards 133.50 or even 134.00. On the downside, an immediate support is near the 130.50.
The next major support is near the 130.00 level, below which there is a risk of a move towards the 128.80 level or 127.50 in the coming days.
Looking at EUR/USD, the pair gained strength above the 1.0800 resistance zone and even spiked above the 1.0880 level.
Economic Releases
- Germany’s Manufacturing PMI for March 2023 (Preliminary) – Forecast 47.0, versus 46.3 previous.
- Germany’s Services PMI for March 2023 (Preliminary) – Forecast 51.0, versus 50.9 previous.
- Euro Zone Manufacturing PMI for March 2023 (Preliminary) – Forecast 49.0, versus 48.5 previous.
- Euro Zone Services PMI for March 2023 (Preliminary) – Forecast 52.5, versus 52.7 previous.
- US Manufacturing PMI for March 2023 (Preliminary) – Forecast 47.0, versus 47.3 previous.
- US Zone Services PMI for March 2023 (Preliminary) – Forecast 50.5, versus 50.6 previous
