Key Highlights
- USD/JPY started a fresh decline below the 113.50 support.
- It traded below a major bullish trend line with support near 114.20 on the 4-hours chart.
- EUR/USD is still facing resistance near 1.1400, and GBP/USD is struggling near 1.3400.
- Crude oil price extended decline below the $65.00 support zone.
USD/JPY Technical Analysis
The US Dollar started a fresh decline from well above 115.00 against the Japanese Yen. USD/JPY even broke the 114.20 support to enter a bearish zone.
Looking at the 4-hours chart, the pair even extended decline below 113.50 support. Finally, there was a close below the 113.20 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The pair traded as low as 112.53 and is currently consolidating losses. On the upside, an initial resistance is near the 113.25 level.
The next major resistance is near 114.00 and the 100 simple moving average (red, 4-hours). It is near the 50% Fib retracement level of the downward move from the 115.52 swing high to 112.53 low. A clear break above the 114.00 zone could lead the pair towards 114.80 or 115.00.
If not, there could be more losses below the 112.50 and 112.40 support levels. In the stated case, the pair may possibly decline towards the 111.50 level.
Looking at EUR/USD, the pair is now facing a major resistance near the 1.1400 level. Besides, GBP/USD must clear 1.3400 for a fresh increase in the near term.
Economic Releases
- Germany’s Services PMI for Nov 2021 – Forecast 53.4, versus 53.4 previous.
- Euro Zone Services PMI for Nov 2021 – Forecast 56.6, versus 56.6 previous.
- UK Services PMI for Nov 2021 – Forecast 58.6, versus 58.6 previous.
- US Services PMI for Nov 2021 – Forecast 57.0, versus 57.0 previous.
- US nonfarm payrolls for Nov 2021 – Forecast 550K, versus 531K previous.
- US Unemployment Rate for Nov 2021 – Forecast 4.5%, versus 4.6% previous.
