Key Highlights
- USD/JPY rallied above 149.20 before the bears appeared.
- It traded below a major bullish trend line with support at 149.35 on the 4-hour chart.
- EUR/USD extended losses and traded below the 1.0950 support.
- GBP/USD is at risk of more downsides below the 1.3000 support.
USD/JPY Technical Analysis
The US Dollar gained pace above the 147.50 and 148.50 levels against the Japanese Yen. USD/JPY even surpassed 149.20 before the bears appeared.
Looking at the 4-hour chart, the pair traded as high as 149.54 and recently corrected some gains. There was a move below a major bullish trend line with support at 149.35. If the bears remain in action, the pair could drop toward the 148.00 level.
On the downside, immediate support sits near the 147.70 level. It is close to the 23.6% Fib retracement level of the upward move from the 141.64 swing low to the 149.54 high.
The next key support sits near the 146.50 level. Any more losses could send the pair toward the 50% Fib retracement level of the upward move from the 141.64 swing low to the 149.54 high at 145.60.
On the upside, the bears might be active near the 149.40 level. The first major resistance might be near the 149.50 level. A close above the 149.50 level could set the tone for another increase.
The next major resistance could be 150.00. A clear move above the 150.00 level might send USD/JPY toward 152.00. Any more gains might call for a test of the 153.20 zone.
Looking at EUR/USD, the bulls failed to defend more downsides, and the pair declined below the 1.0950 support zone.
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