Key Highlights
- USD/JPY started a decent increase and climbed toward 144.00.
- It broke a key bearish trend line with resistance near 141.00 on the 4-hour chart.
- EUR/USD is struggling to start a fresh increase above the 1.1000 resistance.
- The US nonfarm payrolls could increase by 200K in July 2023, down from 209K.
USD/JPY Technical Analysis
The US Dollar started a fresh increase above the 140.50 resistance against the Japanese Yen. USD/JPY cleared the 141.20 resistance to move into a positive zone.
Looking at the 4-hour chart, the pair also broke a key bearish trend line with resistance near 141.00. There was a close above the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
The pair even traded toward the 144.00 resistance. A high is formed near 143.97 and the pair is now consolidating gains. Initial support is near the 141.70 level and the 200 simple moving average (green, 4 hours).
The next major support is near 141.00, below which USD/JPY could gain bearish momentum. In the stated case, the pair could test the 140.00 support.
On the upside, the pair is facing resistance near the 143.80 level. The first major resistance is near 144.00. A close above the 144.00 resistance could push the pair toward 145.00. Any more gains could start a fresh increase toward the 148.00 level.
Looking at EUR/USD, the pair extended its decline below the 1.1000 level and there is a risk of more downsides.
Economic Releases
- US nonfarm payrolls for July 2023 – Forecast 200K, versus 209K previous.
- US Unemployment Rate for July 2023 – Forecast 3.6%, versus 3.6% previous.
