Key Highlights
- USD/JPY started a downside correction from the 158.85 zone.
- It traded below a key rising channel with support at 157.10 on the 4-hour chart.
- EUR/USD is struggling to recover above the 1.0350 resistance.
- GBP/USD is still trading in the red zone below 1.2350.
USD/JPY Technical Analysis
The US Dollar struggled to rise toward 160.00 against the Japanese Yen. USD/JPY traded as high as 158.87 on TitanFX and recently corrected some gains.
Looking at the 4-hour chart, the pair declined below the 158.00 and 157.50 support levels. It traded below a key rising channel with support at 157.10. There was a move below the 38.2% Fib retracement level of the upward move from the 151.79 swing low to the 158.87 high.
The pair settled below the 100 simple moving average (red, 4-hour), but remained above the 200 simple moving average (green, 4-hour). On the downside, immediate support sits near the 155.35 level.
The 50% Fib retracement level of the upward move from the 151.79 swing low to the 158.87 high is also near 155.35. The next key support sits near the 154.50 level and the 200 simple moving average (green, 4-hour).
Any more losses could send the pair toward the 153.50 level. On the upside, the pair is facing hurdles near the 156.80 level. The first major resistance is near the 157.20 level.
The next major resistance is near the 157.50 level. A close above the 157.50 level could set the tone for another increase. In the stated case, the pair could rise toward the 158.80 resistance. The main hurdle could be 160.00.
Looking at EUR/USD, the pair started a short-term recovery wave, but the bears are active near the 1.0350 resistance zone.
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