Key Highlights
- USD/JPY is struggling to climb above the 110.50 resistance zone.
- It broke a key bullish trend line with support near 109.75 on the 4-hours chart.
- EUR/USD is consolidating above the 1.1800 support zone.
- GBP/USD found support near 1.3720 and started a fresh increase above 1.3800.
USD/JPY Technical Analysis
The US Dollar made a couple of attempts to clear 110.40 and 110.50 against the Japanese Yen. However, USD/JPY failed to continue higher and recently corrected lower.
Looking at the 4-hours chart, the pair traded as high as 110.44 before correcting lower. There was a break below the 110.20 and 110.00 support levels. Besides, there was a break below a key bullish trend line with support near 109.75.
The pair settled below the 110.00 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
An immediate support is near the 109.60. The first key support is near the 109.50 zone. A downside break below 109.50 could open the doors for a sharp decline in the coming sessions.
On the upside, an initial resistance is near the 110.00 level. The main hurdle for the bulls is still near the 110.40 and 110.50 levels. A close above 110.50 might clear the path for a move towards 111.20.
Looking at EUR/USD, the pair corrected lower, but the bulls are protecting the 1.1800 support zone. Besides, GBP/USD recovered losses and it is back above 1.3800.
Economic Releases
- UK Industrial Production for July 2021 (MoM) – Forecast +0.4%, versus -0.7% previous.
- UK Manufacturing Production for July 2021 (MoM) – Forecast +0.1%, versus +0.2% previous.
- UK GDP for July 2021 (MoM) – Forecast +0.6%, versus +1% previous.
- US Producer Price Index for August 2021 (MoM) – Forecast +0.6%, versus +1% previous.
- Canada’s employment Change payrolls for August 2021 – Forecast 100K, versus 94K previous.
- Canada’s Unemployment Rate for August 2021 – Forecast 7.3%, versus 7.5% previous.
