Key Highlights
- USD/JPY climbed above 134.50 before sellers appeared.
- A key bullish trend line is forming with support near 133.50 on the 4-hour chart.
- Crude oil price slowly moved lower below the $78.80 support.
- The US Manufacturing PMI could decline from 49.2 to 49.0 in April 2023.
USD/JPY Technical Analysis
The US Dollar gained pace after it broke the 133.50 resistance against the Japanese Yen. USD/JPY climbed above the 134.20 and 134.50 levels.
Looking at the 4-hour chart, the pair traded as high as 135.13. Recently, it started a downside correction below the 134.50 level. There was a break below the 23.6% Fib retracement level of the upward move from the 132.02 swing low to the 135.13 high.
On the downside, there is a major support forming near 133.55. There is also a key bullish trend line forming with support near 133.50 on the same chart.
The trend line is near the 50% Fib retracement level of the upward move from the 132.02 swing low to the 135.13 high. A break below the trend line might call for a test of the 200 simple moving average (green, 4 hours) or the 100 simple moving average (red, 4 hours).
Any more losses might send USD/JPY toward the 132.00 support. On the upside, the pair is facing resistance near the 134.80 level.
The next key resistance is near the 135.20 zone. A clear move above the 135.20 resistance might send the pair toward the 135.80 zone. Any more gains might send the pair toward 136.20.
Looking at crude oil prices, there was a steady decline and the bears were able to push the price below the $78.80 support.
Economic Releases
- Germany’s Manufacturing PMI for April 2023 – Forecast 45.7, versus 44.7 previous.
- Germany’s Services PMI for April 2023 – Forecast 53.3, versus 53.7 previous.
- Euro Zone Manufacturing PMI for April 2023 – Forecast 48.0, versus 47.3 previous.
- Euro Zone Services PMI for April 2023 – Forecast 54.5, versus 55.0 previous.
- UK Manufacturing PMI for April 2023 – Forecast 48.5, versus 47.9 previous.
- UK Services PMI for April 2023 – Forecast 52.9, versus 52.9 previous.
- US Manufacturing PMI for April 2023 – Forecast 49.0, versus 49.2 previous.
- US Services PMI for April 2023 – Forecast 51.2, versus 52.6 previous.
