Key Highlights
- USD/JPY declined below the 135.20 and 135.00 support levels.
- It is trading above the key support at 133.80 and 133.50 on the 4-hour chart.
- EUR/USD traded below strong support at 1.0950.
- The UK GDP could grow 0.1% in Q1 2023 (QoQ) (Prelim).
USD/JPY Technical Analysis
The US Dollar started a strong decline from the 137.75 zone against the Japanese Yen. USD/JPY traded below the 135.50 level to move into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 135.00 level and the 100 simple moving average (red, 4 hours). However, the bulls appeared near the 133.80 support and the 200 simple moving average (green, 4 hours).
The pair is now consolidating losses above the 133.80 support. Immediate resistance on the upside is near the 134.80 level and the 100 simple moving average (red, 4 hours). The next key resistance is near the 135.00 level.
The main resistance sits near 135.20. A clear upside break and close above the 135.20 resistance might start another steady increase. The next key resistance is near the 136.20 zone. Any more gains might send the pair toward 137.00.
On the downside, the pair might find bids near 133.80. The next major support is near the 133.50 level. If there is a downside break below the 133.50 level, the pair could test the 132.50 level.
Looking at EUR/USD, the pair failed to climb above the 1.1050 resistance and traded below strong support at 1.0950.
Economic Releases
- UK Industrial Production for March 2023 (MoM) – Forecast 0%, versus -0.2% previous.
- UK Manufacturing Production for March 2023 (MoM) – Forecast -0.1%, versus 0% previous.
- UK GDP for Q1 2023 (QoQ) (Prelim) – Forecast +0.1%, versus +0.1% previous.
