Key Highlights
- USD/JPY started a fresh increase above the 145.00 resistance.
- A key bullish trend line is forming with support at 145.80 on the 4-hour chart.
- EUR/USD declined below the 1.1075 support level.
- GBP/USD trimmed gains and traded below the 1.3200 support level.
USD/JPY Technical Analysis
The US Dollar formed a base above 141.65 and started a fresh increase against the Japanese Yen. USD/JPY broke the 142.50 and 143.00 levels to turn positive.
Looking at the 4-hour chart, the pair gained bullish momentum above the 145.00 resistance zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The pair surpassed the 76.5% Fib retracement level of the downward move from the 146.49 swing high to the 141.63 low. It is now attempting more gains above the 147.20 level. On the upside, the bears might be active near the 147.50 level.
A close above the 147.50 level could set the tone for another increase. The next major resistance could be 148.00. A clear move above the 148.00 level might send USD/JPY toward 149.20. Any more gains might call for a test of the 150.00 zone.
On the downside, immediate support sits near the 145.80 level. There is also a key bullish trend line forming with support at 145.80 on the same chart, below which the pair might test 145.20.
The next key support sits near the 143.65 level and the 200 simple moving average (green, 4-hour). Any more losses could send the pair toward the 100 simple moving average (red, 4-hour) at 143.20.
Looking at EUR/USD, the pair failed to start a fresh increase and saw a downside break below the 1.1075 support zone.
Upcoming Economic Events:
- US nonfarm payrolls for Sep 2024 – Forecast 140K, versus 142K previous.
- US Unemployment Rate for Sep 2024 – Forecast 4.2%, versus 4.2% previous.
