Key Highlights
- USD/JPY extended losses and tested the 140.70 level.
- A connecting bearish trend line is forming with resistance at 143.10 on the 4-hour chart.
- Gold surged above the $2,530 and $2,550 resistance levels.
- Oil might aim for a recovery wave toward the $70.00 level.
USD/JPY Technical Analysis
The US Dollar remained in a bearish zone below 145.00 against the Japanese Yen. USD/JPY extended losses below the 143.20 and 142.50 support levels.
Looking at the 4-hour chart, the pair tested the 140.70 level and settled well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). A low was formed at 140.70 and the pair is now consolidating losses.
There was a minor increase above the 142.00 resistance. The pair climbed above the 23.6% Fib retracement level of the downward move from the 147.20 swing high to the 140.70 low.
On the upside, the pair could face resistance near the 143.00 level. There is also a connecting bearish trend line forming with resistance at 143.10 on the same chart. The next key resistance sits near the 144.00 zone or the 50% Fib retracement level of the downward move from the 147.20 swing high to the 140.70 low.
A clear move above the 144.00 level could set the pace for a move toward the 100 simple moving average (red, 4-hour). Any more gains might call for a test of the 145.50 zone.
On the downside, immediate support sits near the 141.20 level. The next key support sits near the 140.70 level. A downside break below the 140.70 level could set the pace for a larger decline. The next major support is near the 140.00 level.
Looking at Gold, the bulls took control and were able to push the price to a new all-time high above $2,568 on TitanFX.
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