Key Highlights
- USD/JPY started a major decline below the 145.00 support.
- A major bearish trend line is forming with resistance near 142.10 on the 4-hour chart.
- EUR/USD surged above the 1.1040 and 1.1080 levels.
- GBP/USD retested the 1.2820 resistance, where the bears emerged.
USD/JPY Technical Analysis
The US Dollar failed to remain stable above the 145.00 zone against the Japanese Yen. USD/JPY declined below the 143.20 support zone to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 142.50 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair even declined below the 141.20 level. A low was formed near 140.24 and the pair is now consolidating losses. On the upside, immediate resistance is near the 141.50 level. The first major resistance is near 142.00.
There is also a major bearish trend line forming with resistance near 142.10 on the same chart. A clear move above the trend line could send the pair further higher toward 142.60.
The next key resistance is near the 143.20 level. A close above the 143.20 zone could open the doors for more upsides. The next stop for the bulls might be 144.00. Any more gains might call for a drift toward the 145.00 level.
If there are more downsides, the pair could drop below the 140.25 level. The next major support is 140.00, below which the pair might decline and test 139.20. Any more losses might send the pair toward the 138.50 support.
Looking at EUR/USD, the pair gained bullish momentum and even climbed above the 1.1100 level before the bears appeared.
Economic Releases
- Chicago Purchasing Manager’s Index for Dec 2023 – Forecast 51.0, versus 55.8 previous.
