Key Highlights
- USD/JPY remained in a positive zone above the 148.50 support zone.
- A short-term bullish trend line is forming with support at 149.25 on the 4-hour chart.
- EUR/USD declined heavily and traded below the 1.0840 support.
- Oil prices are at risk of more downsides below the $69.75 support.
USD/JPY Technical Analysis
The US Dollar started a decent increase above the 148.00 level against the Japanese Yen. USD/JPY settled above 148.50 to set the tone for more upsides.
Looking at the 4-hour chart, the pair is stable above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair even tested the 150.00 resistance zone before the bears emerged.
On the downside, immediate support sits near the 149.20 level. There is also a short-term bullish trend line forming with support at 149.25 on the same chart.
The next key support sits near the 148.50 level. Any more losses could send the pair toward the 147.80 level. On the upside, the bears might be active near the 150.20 level. The first major resistance might be near the 150.50 level.
A close above the 150.50 level could set the tone for another increase. The next major resistance could be 151.20. A clear move above the 151.20 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 bears remained active and were able to push the pair below the 1.0880 and 1.0850 support levels.
Upcoming Economic Events:
- US Housing Starts for Sep 2024 (MoM) – Forecast 1.350M, versus 1.356M previous.
- US Building Permits for Sep 2024 (MoM) – Forecast 1.460M, versus 1.470M previous.
