Key Highlights
- USD/JPY broke the 150.00 resistance and remains in a positive zone.
- A crucial bullish trend line is forming with support near 149.80 on the 4-hour chart.
- EUR/USD and GBP/USD turned lower and might extend losses.
- The US GDP grew 4.9% in Q3 2023 (Prelim), more than the market forecast of 4.2%.
USD/JPY Technical Analysis
The US Dollar remained in a strong uptrend above the 148.50 level against the Japanese Yen. USD/JPY gained bullish momentum and broke the 150.00 resistance.
Looking at the 4-hour chart, the pair settled well above the 149.20 support, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
It traded as high as 150.77 before there were swing moves. However, the pair remained well supported above the 149.20 support. There is also a crucial bullish trend line forming with support near 149.80 on the same chart.
On the upside, the pair might face resistance near the 150.80 level. If there is a clear move above 150.80, the pair could rise toward the 151.40 resistance. The next key resistance is near 152.00, above which the pair could rise toward the 155.00 level.
If there is a fresh decline, the pair might find bids near 150.00. The next key support is seen near the trend line at 149.80, below which it could test the 100 simple moving average (red, 4 hours) at 149.20. Any more losses might send the pair toward the 148.80 level.
Looking at EUR/USD, the pair struggled to recover and remains at risk of more downsides below the 1.0500 support.
Fundamentally, the US Gross Domestic Product Annualized report was released by the US Bureau of Economic Analysis. The market was looking for a 4.2% rise in the GDP in Q3 2023 (Prelim).
The actual result surpassed the market expectations, as the US Gross Domestic Product grew 4.9% in Q3 2023, the first estimate showed on Thursday.
Economic Releases
- US Personal Income for Sep 2023 (MoM) – Forecast +0.4%, versus +0.4% previous.
