Key Highlights
- USD/JPY started a recovery wave above the 132.20 resistance.
- It broke a major bearish trend line with resistance near 131.20 on the 4-hours chart.
- GBP/USD rallied and traded to a new monthly high above 1.2340.
- EUR/USD is also gaining pace above the 1.0850 resistance zone.
USD/JPY Technical Analysis
The USD/JPY started a decent recovery wave from the 129.65 zone against the Japanese Yen. USD/JPY traded above the 130.50 and 131.20 levels to move into a positive zone.
Looking at the 4-hours chart, the pair cleared a major bearish trend line with resistance near 131.20. The pair even tested the 132.80 resistance zone and traded close to the 100 simple moving average (red, 4-hours).
The first major resistance is near the 133.20 level. The next key resistance is near the 133.50 zone and the 200 simple moving average (green, 4-hours). It is close to the 50% Fib retracement level of the downward move from the 137.91 swing high to 129.63 low.
A clear move above the 133.50 resistance might send the pair towards the 134.50 zone. Any more gains might send the pair towards 135.00.
On the downside, an immediate support is near the 131.80. The next major support is near the 131.20 level, below which there is a risk of a move towards the 130.50 support.
Looking at GBP/USD, the pair gained pace above the 1.2350 resistance and even traded to a new monthly high.
Economic Releases
- UK GDP for Q4 2022 (QoQ) – Forecast 0%, versus 0% previous.
- Euro Zone CPI for March 2023 (YoY, Preliminary) – Forecast +7.1%, versus +8.5% previous.
- Euro Zone CPI for March 2023 (MoM, Preliminary) – Forecast +0.8%, versus +0.8% previous.
