Key Highlights
- USD/JPY failed to clear the 145.00 resistance zone and declined.
- A major bearish trend line is forming with resistance at 144.00 on the 4-hour chart.
- EUR/USD and GBP/USD remained in a positive zone and eye more gains.
- The US GDP grew 4.9% in Q3 2023, less than the market forecast of 5.2%.
USD/JPY Technical Analysis
The US Dollar attempted a fresh upside break above the 145.00 resistance against the Japanese Yen. However, USD/JPY failed to gain momentum and started a fresh decline.
Looking at the 4-hour chart, the pair settled below the 144.00 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours). There was a clear move below the 143.20 support zone.
The bears pushed the pair below the 50% Fib retracement level of the upward move from the 140.95 swing low to the 144.95 high. USD/JPY even showed some bearish reaction after the US GDP came in at 4.9% in Q3 2023, down from 5.2%.
The next major support is 141.50, below which the pair might decline and test 141.00. Any more losses might send the pair toward the 140.00 handle.
On the upside, immediate resistance is near the 143.20 level. The next key resistance is near the 144.00 level. There is also a major bearish trend line forming with resistance at 144.00 on the same chart. A close above the 144.00 zone could open the doors for more upsides. The next stop for the bulls might be 145.00.
Looking at EUR/USD, the pair remained in a positive zone and the bulls seem to be aiming for a move toward the 1.1120 level.
Economic Releases
- US New Home Sales for Nov 2023 (MoM) – Forecast +0.2% versus -5.6% previous.
- US Durable Goods Orders for Nov 2023 – Forecast +2.2% versus -5.4% previous.
