Key Highlights
- USD/JPY tested the 153.50 support and recovered losses.
- A key bearish trend line is forming with resistance at 156.00 on the 4-hour chart.
- EUR/USD gained pace for a move above the 1.0800 resistance.
- Bitcoin climbed higher and tested the $66,500 resistance zone.
USD/JPY Technical Analysis
The US Dollar started a sharp decline from the 156.80 region against the Japanese Yen. USD/JPY tested the 153.50 support and recently recovered losses.
Looking at the 4-hour chart, the pair traded as low as 153.58 before it started an upside correction. There was a move above the 154.50 and 154.80 resistance levels. The pair cleared the 50% Fib retracement level of the downward move from the 156.78 swing high to the 153.59 low.
It settled above the 200 simple moving average (green, 4-hour) and tested the 100 simple moving average (red, 4-hour) and tested.
The first major resistance is near 156.00. There is also a key bearish trend line forming with resistance at 156.00 on the same chart. It coincides with the 76.4% Fib retracement level of the downward move from the 156.78 swing high to the 153.59 low.
A clear move above the 156.00 resistance might send it toward the 156.80 level. Any more gains might call for a move toward the 158.00 level in the near term.
Conversely, USD/JPY might start another decline. Immediate support is near the 154.80 level. The first major support is near the 154.35 level. The next major support is at 153.50. If there is a downside break below the 153.50 support, the pair might test 152.00.
Looking at EUR/USD, the pair climbed above the 1.0800 and 1.0850 resistance levels before the bears appeared at 1.0900.
Economic Releases
- Euro Zone CPI for April 2024 (YoY) – Forecast +2.4%, versus +2.4% previous.
- Euro Zone CPI for April 2024 (MoM) – Forecast +0.6%, versus +0.6% previous.
