Key Highlights
- USD/JPY started a downside correction from the 140.93 high.
- It traded below a key bullish trend line with support near 139.60 on the 4-hour chart.
- EUR/USD managed to stay above 1.0620 and corrected higher.
- The US nonfarm payrolls could increase by 190K in May 2023, down from 253K.
USD/JPY Technical Analysis
The US Dollar faced resistance near 140.93 after a massive increase against the US Dollar. USD/JPY started a downside correction below the 140.50 level.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support near 139.60. There was a sharp move below the 50% Fib retracement level of the upward move from the 137.42 swing low to the 140.93 high.
The pair even spiked below the 138.80 support. Immediate support is near the 138.25 level. It is near the 76.4% Fib retracement level of the upward move from the 137.42 swing low to the 140.93 high.
The next major support is near the 137.90 level or the 100 simple moving average (red, 4 hours). If there is a downside break below the 137.90 support, the pair could decline toward the 200 simple moving average (green, 4 hours).
On the upside, the pair might face resistance near the 139.50 level. The next major resistance is near 140.00, above which the pair could rise toward the 140.80 level.
Looking at EUR/USD, the pair found support near the 1.0620 level and recently started a short-term upside correction.
Economic Releases
- US nonfarm payrolls for May 2023 – Forecast 190K, versus 253K previous.
- US Unemployment Rate for May 2023 – Forecast 3.5%, versus 3.4% previous.
