Key Highlights
- USD/JPY is facing many hurdles near 148.00.
- A major bearish trend line is forming with resistance near 148.10 on the 4-hour chart.
- Gold prices jumped toward $2,050 before it faced resistance.
- Crude oil prices are recovering losses and trading above $75.50.
USD/JPY Technical Analysis
The US Dollar saw a major decline from well above 149.50 against the Japanese Yen. USD/JPY declined below the 148.50 and 148.00 support levels to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 148.00 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
It even spiked below the 147.00 level. A low was formed near 146.6 before the pair started an upside correction. There was a minor increase above the 147.20 level. The pair surpassed the 23.6% Fib retracement level of the downward move from the 149.71 swing high to the 146.66 low.
On the upside, immediate resistance is near the 148.00 level. The next key resistance is near the 148.20 level or the trend line. It coincides with the 50% Fib retracement level of the downward move from the 149.71 swing high to the 146.66 low.
A close above the 148.20 zone could open the doors for more upsides. The next stop for the bulls might be 148.80. If not, USD/JPY might resume its decline. Immediate support is near the 147.00 level.
The next key support sits at 146.65, below which the pair could test the 145.00 pivot level in the near term. Any more losses might call for a move toward 143.20.
Looking at Gold, there was a strong increase above the $2,025 resistance but the bears remained active near $2,050.
Economic Releases
- Germany Manufacturing PMI for Nov 2023 – Forecast 42.3, versus 42.3 previous.
- Euro Zone Manufacturing PMI for Nov 2023 – Forecast 43.8, versus 43.8 previous.
- UK Manufacturing PMI for Nov 2023 – Forecast 46.6, versus 46.7 previous.
- US Manufacturing PMI for Nov 2023 – Forecast 49.4, versus 49.4 previous.
- US ISM Manufacturing PMI for Nov 2023 – Forecast 47.6, versus 46.7 previous.
