Key Highlights
- USD/JPY remained well-bid above the 150.00 support.
- A major bullish trend line is forming with support near 150.50 on the 4-hour chart.
- EUR/USD might correct lower, and GBP/USD is struggling to stay in a positive zone.
- Oil prices declined further below the $77.50 support.
USD/JPY Technical Analysis
The US Dollar started a fresh increase after it tested the 150.00 support against the Japanese Yen. USD/JPY climbed above the 150.50 level to restart its increase.
Looking at the 4-hour chart, the pair broke many hurdles and cleared the 50% Fib retracement level of the downside correction from the 151.98 swing high to the 150.04 low. The pair is now showing positive signs above the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
On the upside, the pair is facing resistance near the 76.4% Fib retracement level of the downside correction from the 151.98 swing high to the 150.04 low at 151.45.
If there is a fresh increase, the pair could surpass the 151.50 level. The next key resistance is near the 151.80 level. The main resistance is still near the 152.00 level. A close above the 152.00 zone could open the doors for more upsides. The next stop for the bulls might be 153.20.
If not, the pair might start another drop below the 150.80 support. The first major support is now forming near the 150.50 level.
There is also a major bullish trend line forming with support near 150.50 on the same chart, below which the pair could test the 150.00 pivot level in the near term. Any more losses may perhaps open the doors for a move toward the 149.20 level.
Looking at EUR/USD, the pair traded toward the 1.0880 resistance and is currently showing signs of a downside correction.
Economic Releases
- US Housing Starts for Oct 2023 (MoM) – Forecast 1.350M, versus 1.358M previous.
- US Building Permits for Oct 2023 (MoM) – Forecast 1.450M, versus 1.417M previous.
