Key Highlights
- USD/JPY gained pace and rallied to a new 24-year high above 140.00.
- A major bullish trend line is forming with support near 138.40 on the 4-hours chart.
- GBP/USD tumbled below 1.1550, and gold price dropped below $1,700.
- The US nonfarm payrolls could increase 300K in August 2022, down from 528K.
USD/JPY Technical Analysis
The US Dollar started a major increase above the 138.00 resistance against the Japanese Yen. USD/JPY gained pace and broke many important hurdles near 138.80.
Looking at the 4-hours chart, the pair settled above the 138.80 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The bulls even pumped the pair above the 139.40 resistance zone. It traded to a new 24-year high above 140.00. The pair seems to be trading in a strong uptrend above the 139.00 zone. There is also a major bullish trend line forming with support near 138.40 on the same chart.
A downside break below the trend line might send the pair towards the 137.80 support. The next major support is near the 137.00 level. Any more losses might call for a move towards 136.20.
On the upside, the pair is facing resistance near the 140.50 level. The next major resistance is near the 141.20 level, above which the pair might rise towards the 142.00 level.
Looking at GBP/USD, the pair gained bearish momentum below the 1.1600 level and declined heavily. Similarly, the bears push gold price below the $1,700 level.
Economic Releases
- US nonfarm payrolls for August 2022 – Forecast 300K, versus 528K previous.
- US Unemployment Rate for August 2022 – Forecast 3.5%, versus 3.5% previous.
