Key Highlights
- USD/JPY extended losses below the 155.50 support.
- A major bearish trend line is forming with resistance at 155.10 on the 4-hour chart.
- Gold prices rallied above the $2,770 resistance zone.
- Bitcoin recovered and was able to climb above the $103,500 resistance zone.
USD/JPY Technical Analysis
The US Dollar started a major decline from well above 157.00 against the Japanese Yen. USD/JPY extended losses and traded below the 155.50 support.
Looking at the 4-hour chart, the pair settled below the 155.00 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bears seem to be in control and might aim for more losses.
On the downside, immediate support sits near the 153.70 level. The next key support sits near the 153.20 level. Any more losses could send the pair toward the 152.00 level.
On the upside, the pair seems to be facing hurdles near the 154.60 level. The next major resistance is near the 155.00 level. There is also a major bearish trend line forming with resistance at 155.10 on the same chart.
A close above the 155.00 and 155.10 levels could set the tone for another increase. In the stated case, the pair could even clear the 156.50 resistance and the 100 simple moving average (red, 4-hour).
Looking at Gold, the bulls remained in action and they were able to push the price above the $2,770 resistance zone.
Upcoming Economic Events:
- US Personal Income for Dec 2024 (MoM) – Forecast +0.4%, versus +0.3% previous.
- US Core Personal Consumption Expenditure for Dec 2024 (MoM) – Forecast +0.2%, versus +0.1% previous.
