Key Highlights
- USD/JPY reacted to the downside from the 133.75 resistance zone.
- It traded below a major bullish trend line with support near 132.90 on the 4-hour chart.
- EUR/USD rallied further above the 1.1000 resistance zone.
- Gold price started a fresh increase above the $2,020 resistance.
USD/JPY Technical Analysis
The US Dollar started a fresh decline after it failed to surpass 133.75 against the Swiss Franc. USD/JPY traded below the 133.20 support to start a bearish wave.
Looking at the 4-hour chart, the pair gained bearish momentum below the 133.00 support zone and settled below the 200 simple moving average (green, 4 hours).
There was also a break below a major bullish trend line with support near 132.90 on the same chart. The pair tested the 132.20 support and the 100 simple moving average (red, 4 hours). The next major support is near the 131.80 level, below which the pair might accelerate lower.
In the stated case, the pair may perhaps decline toward the 130.50 level. Any more losses might call for a test of the 129.80 support zone.
On the upside, the pair is facing resistance near the 133.00 level. The next key resistance is near the 133.75 zone. A clear move above the 133.75 resistance might send the pair toward the 134.50 zone. Any more gains might send the pair toward 135.00.
Looking at EUR/USD, there was a major upside break above 1.1000, and the pair traded to a new multi-week high above 1.1050.
Economic Releases
- US Retail Sales for March 2023 (MoM) – Forecast -0.4%, versus -0.4% previous.
- US Industrial Production for March 2023 (MoM) – Forecast 0.2%, versus 0% previous.
