Key Highlights
- USD/JPY is struggling to clear the 147.80 resistance zone.
- A major support is forming near 146.60 on the 4-hour chart.
- EUR/USD took a hit and traded below the 1.0700 support.
- Crude oil prices rallied further and climbed above the $90.00 level.
USD/JPY Technical Analysis
The US Dollar made a couple of attempts to clear 147.80 against the Japanese Yen but failed to gain traction. USD/JPY is now showing a few bearish signs below 147.50.
Looking at the 4-hour chart, the pair climbed higher nicely above the 147.00 level. However, the bears seem to be active near the 147.80 resistance zone. The pair failed on more than two occasions to settle above 147.80.
It is now correcting gains below 147.50. On the downside, immediate support is near 146.80, and the 50% Fib retracement level of the upward move from the 145.89 swing low to the 147.74 high.
The next key support is seen near the 146.60 level or the 100 simple moving average (red, 4 hours). If there is a move below 146.60, the pair could dive toward 146.00. Any more losses might send the pair toward the 145.35 level or the 200 simple moving average (green, 4 hours).
If there is another increase, the pair might face resistance near 147.50. The next major resistance is near the 147.80 zone. A close above 147.80 could start another decent increase.
In the stated case, the pair could rise toward the 148.40 level. Any more gains might send USD/JPY toward the 150.00 handle.
Looking at EUR/USD, the pair failed to start a recovery wave and extended its drop below the 1.0700 level.
Economic Releases
- US Industrial Production for August 2023 (MoM) – Forecast 0.1%, versus 1% previous.
- Michigan Consumer Sentiment Index for Sep 2023 (Prelim) – Forecast 69.1, versus 69.5 previous.
