Key Highlights
- USD/JPY started a consolidation phase above the 156.20 support.
- A short-term rising channel is forming with support at 157.10 on the 4-hour chart.
- GBP/USD accelerated losses below the 1.2350 support.
- AUD/USD and NZD/USD trade heavily in the bearish zone.
USD/JPY Technical Analysis
The US Dollar remained in a positive zone above 155.00 against the Japanese Yen. USD/JPY climbed above the 156.50 and 157.00 levels before the bears appeared.
Looking at the 4-hour chart, the pair settled above the 157.00 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair tested the 158.50 zone and traded as high as 158.55.
It is now consolidating gains below the 158.50 zone. There is also a short-term rising channel forming with support at 157.10. On the upside, the pair is facing hurdles near the 158.50 level. The first major resistance is near the 159.20 level.
The next major resistance is near the 160.00 level. A close above the 160.00 level could set the tone for another increase. In the stated case, the pair could rise toward the 162.00 resistance.
On the downside, immediate support sits near the 157.10 level and the trend line. The next key support sits near the 156.50 level. Any more losses could send the pair toward the 155.50 level.
Looking at GBP/USD, the pair started another decline and the bears were able to push the pair below the 1.2350 support.
Upcoming Economic Events:
- US nonfarm payrolls for Dec 2024 – Forecast 160K, versus 227K previous.
- US unemployment Rate for Dec 2024 – Forecast 4.2%, versus 4.2% previous.
