Key Highlights
- USD/JPY struggled to continue higher above the 150.00 resistance zone.
- A major bearish trend line is forming with resistance at 145.60 on the 4-hour chart.
- Oil prices are consolidating losses near the $75.00 level.
- EUR/USD is showing bullish signs above the 1.1120 level.
USD/JPY Technical Analysis
The US Dollar started a recovery wave above 147.00 against the Japanese Yen. However, USD/JPY failed to continue higher above 149.40 and started a fresh decline.
Looking at the 4-hour chart, the pair topped near 149.39 and recently started a fresh decline. There was a move below the 146.80 and 146.50 support levels. There was a move below the 50% Fib retracement of the upward move from the 141.68 swing low to the 149.39 high.
Immediate support is near the 143.50 level. It is near the 76.4% Fib retracement of the upward move from the 141.68 swing low to the 149.39 high.
The first major support is near the 142.50 level. A downside break below the 142.50 level could set the pace for a larger decline. The next major support is near the 141.50 level. Any more losses might send the pair toward the 140.00 support level.
On the upside, the pair could face resistance near the 144.80 level. The first key resistance sits near the 145.60 level. A clear move above the 145.60 level could set the pace for a move toward the 147.00 level.
Looking at EUR/USD, the pair rallied above the 1.1120 level and now seems to be consolidating gains for more upsides.
Economic Releases
- US Durable Goods Orders for July 2024 – Forecast +4% versus -6.7% previous.
