Key Highlights
- USD/JPY extended gains above the 152.50 resistance zone.
- It broke a key rising channel with resistance at 151.20 on the 4-hour chart.
- Gold prices started a short-term downside correction after hitting a new all-time high at $2,758.
- EUR/USD and GBP/USD could attempt a recovery wave.
USD/JPY Technical Analysis
The US Dollar remained in a bullish zone above 148.00 against the Japanese Yen. USD/JPY cleared the 150.00 resistance to move into a positive zone.
Looking at the 4-hour chart, the pair settled above the 150.50 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair broke a key rising channel with resistance at 151.20.
Finally, it surpassed the 153.00 level. A high was formed at 153.18 before there was a pullback. On the downside, immediate support sits near the 151.50 level.
The next key support sits near the 150.50 level. Any more losses could send the pair toward the 150.00 level. The main support sits near the 100 simple moving average (red, 4-hour) at 149.10.
On the upside, the pair could face resistance near the 152.80 level. The first key resistance is near the 153.20 level. A close above the 153.20 level could set the tone for another increase. The next major resistance could be 153.50, above which the price could accelerate higher toward the 155.00 level.
Looking at EUR/USD, the pair declined toward the 1.0765 zone and might attempt a recovery wave in the near term.
Upcoming Economic Events:
- US Durable Goods Orders for Sep 2024 – Forecast -0.9% versus 0% previous.
- Michigan Consumer Sentiment Index for Oct 2024 (Prelim) – Forecast 69.0, versus 68.9 previous.
