Key Highlights
- USD/JPY started a downside correction from 114.60.
- A major declining channel is forming with resistance near 114.20 on the 4-hours chart.
- EUR/USD could extend losses below 1.1520 and 1.1500.
- GBP/USD nosedived below the 1.3600 and 1.3550 support levels.
USD/JPY Technical Analysis
The US Dollar settled above the 113.20 pivot level against the Japanese Yen. USD/JPY even climbed above 114.25 before it faced resistance.
Looking at the 4-hours chart, the pair formed a high near 114.68 before it started a downside correction. There was a break below the 114.20 and 114.00 support levels.
The pair traded below the 23.6% Fib retracement level of the upward move from the 110.81 swing low to 114.67 high. It is now trading below the 114.00 level and the 100 simple moving average (red, 4-hours).
On the downside, an initial support is near 113.20 level. The next major support is near 112.80. It is near the 50% Fib retracement level of the upward move from the 110.81 swing low to 114.67 high.
The main support is near 112.50 and the 200 simple moving average (green, 4-hours). On the upside, an immediate resistance is near the 114.00 level and the 100 SMA. The next major resistance is near the 114.20 level, above which the pair might rise towards the 114.60 level. Any more gains could lead the pair towards the 115.20 level.
Looking at EUR/USD, the pair started a major decline below 1.1580. Similarly, GBP/USD declined heavily after it settled below the 1.3600 level.
Economic Releases
- US nonfarm payrolls for Oct 2021 – Forecast 425K, versus 194K previous.
- US Unemployment Rate for Oct 2021 – Forecast 4.7%, versus 4.8% previous.
- Canada’s employment Change for Oct 2021 – Forecast 19.3K, versus 157.1K previous.
- Canada’s Unemployment Rate for Oct 2021 – Forecast 6.9%, versus 6.9% previous.
