Key Highlights
- USD/JPY started an upside correction from the 150.50 zone.
- A major bearish trend line is forming with resistance at 152.50 on the 4-hour chart.
- EUR/USD is struggling to recover above the 1.0600 resistance.
- GBP/USD must settle above 1.2720 to start a decent increase.
USD/JPY Technical Analysis
The US Dollar started a major decline from well above 155.50 against the Japanese Yen. USD/JPY declined below the 153.50 level to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 152.50 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, it tested the 150.50 zone. A low was formed at 150.46 and the pair started an upside correction.
There was a move above the 151.50 level. The pair climbed above the 23.6% Fib retracement level of the downward move from the 155.88 swing high to the 150.46 low.
On the upside, the pair could face resistance near the 152.50 level. There is also a major bearish trend line forming with resistance at 152.50 on the same chart. The first major resistance is near the 153.20 level or the 50% Fib retracement level of the downward move from the 155.88 swing high to the 150.46 low.
A close above the 153.20 level could set the tone for another increase. The next major resistance could be 154.00, above which the price could climb higher toward the 155.80 resistance.
On the downside, immediate support sits near the 151.00 level. The next key support sits near the 150.50 level. Any more losses could send the pair toward the 148.00 level.
Looking at EUR/USD, the pair started a recovery wave but upsides face many hurdles near the 1.0600 level.
Upcoming Economic Events:
- Euro Zone CPI for Nov 2024 (YoY) (Prelim) – Forecast +2.3%, versus +2.0% previous.
- Euro Zone Core CPI for Nov 2024 (YoY) (Prelim) – Forecast +2.8%, versus +2.7% previous.
