Key Highlights
- USD/JPY started a fresh increase from the 149.20 support.
- It broke a major bearish trend line with resistance near 150.00 on the 4-hour chart.
- EUR/USD recovered toward 1.0750 before it started a consolidation phase.
- Crude oil prices saw a major decline below the $80.00 support.
USD/JPY Technical Analysis
The US Dollar remained strong above the 149.20 level against the Japanese Yen. USD/JPY remained stable and started a fresh increase above the 149.80 resistance.
Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance near 150.00. It cleared the 50% Fib retracement level of the downward move from the 151.70 swing high to the 149.19 low.
Besides, the pair settled well above the 150.00 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
However, it is facing resistance near the 76.4% Fib retracement level of the downward move from the 151.70 swing high to the 149.19 low at 151.10. The main resistance is still near the 151.70 level. A close above the 151.70 and 152.00 levels could open the doors for more upsides.
If not, the pair might start another drop below the 150.00 support. The first major support is now forming near the 149.50 level, below which the pair could test the 149.20 pivot level in the near term.
The main support sits near the 148.80 zone. A downside break below 148.80 might spark a sharp decline. The next key support sits at 147.50.
Looking at EUR/USD, the pair gained bullish momentum above 1.0700 but struggled near 1.0750 and is now consolidating gains.
Economic Releases
- Michigan Consumer Sentiment Index for Nov 2023 (Prelim) – Forecast 63.7, versus 63.8 previous.
