Key Highlights
- USD/JPY rallied toward 151.70 before there was a pullback.
- A connecting bearish trend line is forming with resistance near 150.60 on the 4-hour chart.
- EUR/USD and GBP/USD avoided more downsides with a minor recovery.
- The US nonfarm payrolls could increase by 180K in Oct 2023, down from 336K.
USD/JPY Technical Analysis
The US Dollar remained strong and rallied above 150.00 against the Japanese Yen. USD/JPY traded as high as 151.70 before there was a pullback.
Looking at the 4-hour chart, the pair corrected lower below the 151.00 level. There was a move below the 50% Fib retracement level of the upward move from the 148.80 swing low to the 151.70 high.
The pair tested the 100 simple moving average (red, 4 hours) and remained stable above the 200 simple moving average (green, 4 hours). The main support sits near the 149.50 level or the 76.4% Fib retracement level of the upward move from the 148.80 swing low to the 151.70 high.
A downside break below the 149.50 support and the 200 simple moving average (green, 4 hours) might spark a sharp decline. The next key support sits at 148.40.
On the upside, the pair might face resistance near the 150.70 level. There is also a connecting bearish trend line forming with resistance near 150.60 on the same chart.
The next key resistance is near 151.00, above which the pair could rise toward the 151.70 level. If there is a clear move above 151.70, the pair could rise toward the 152.50 resistance.
Looking at EUR/USD, the pair found support near the 1.0520 level and recently started a recovery wave above the 1.0585 level.
Economic Releases
- US nonfarm payrolls for Oct 2023 – Forecast 180K, versus 336K previous.
- US Unemployment Rate for Oct 2023 – Forecast 3.8%, versus 3.8% previous.
- US ISM Services Index for Feb 2023 – Forecast 53.0, versus 53.6 previous.
