Key Highlights
- USD/JPY started a fresh increase above the 113.50 and 114.00 levels.
- A key rising channel is forming with support near 113.60 on the 4-hours chart.
- EUR/USD is still trading well below the 1.1350 resistance zone.
- Gold price spiked towards the $1,750 support before correcting higher.
USD/JPY Technical Analysis
The US Dollar formed a base above the 112.65 level against the Japanese Yen. USD/JPY started a fresh increase above the 113.50 resistance level.
Looking at the 4-hours chart, the pair gained pace after there was a close above the 113.50 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair even surpassed the 50% Fib retracement level of the key decline from the 115.52 swing high to 112.53 swing low. Besides, there is a key rising channel forming with support near 113.60 on the same chart.
An immediate resistance is near the 114.80 level. It is near the 76.4% Fib retracement level of the key decline from the 115.52 swing high to 112.53 swing low.
The next key resistance is near the 115.00 level. A clear break above the 114.80 and 115.00 resistance levels could open the doors for more gains. If there is a downside correction, the pair might find support near the 113.60 level.
If there is a downside break below the trend line, the pair could decline towards the 113.50 level. The next major support is near the 113.00 level, below which the pair could decline heavily.
Looking at EUR/USD, the pair is still well below the 1.1350 level, but it is showing a few positive signs of a recovery wave.
Economic Releases
- German IFO Business Climate Index for Dec 2021 – Forecast 95.4, versus 96.5 previous.
- Euro Zone CPI for Nov 2021 (YoY) – Forecast +4.9%, versus +4.9% previous.
- Euro Zone CPI for Nov 2021 (MoM) – Forecast +0.5%, versus +0.8% previous.
