Key Highlights
- USD/JPY declined heavily below 142.00 and 140.00.
- It traded below a key bullish trend line with support near 144.20 on the 4-hour chart.
- EUR/USD rallied further above 1.1150.
- GBP/USD surged above the key 1.3000 resistance zone.
USD/JPY Technical Analysis
The US Dollar started a major decline from the 145.00 zone against the Japanese Yen. USD/JPY traded below a key bullish trend line with support near 144.20.
Looking at the 4-hour chart, the pair settled below the 142.00 support, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours).
There was a sharp move below the 140.00 support. The pair tested the 138.00 zone and remains at risk of more losses. Immediate support is near the 138.00 level. The next major support is at 137.40, below which there could be a drop to 136.50.
On the upside, immediate resistance is near the 139.10 level. The next major resistance is near 139.80. The first major resistance is near the 140.00 level.
If there is a move above the 140.00 resistance, the pair could rise toward 140.80. Any more gains might send the pair toward the 142.00 resistance zone, where the bears might emerge.
Looking at EUR/USD, the pair gained strength and rallied above 1.1150. Similarly, GBP/USD surged above the 1.3000 and 1.3050 resistance levels.
Economic Releases
- US Import Price Index for June 2023 (MoM) – Forecast -0.2%, versus -0.6% previous.
- US Export Price Index for June 2023 (MoM) – Forecast -0.2%, versus -1.9% previous.
