Key Highlights
- USD/JPY started a downside correction from the 150.80 resistance.
- A major rising channel is forming with support at 149.25 on the 4-hour chart.
- Gold price dived below $2,000 before it started a recovery wave.
- Bitcoin price extended its rally above the $52,200 resistance.
USD/JPY Technical Analysis
The US Dollar remained in a positive zone above 148.00 against the Japanese Yen. USD/JPY accelerated higher and even broke the 150.00 level before the bears appeared.
Looking at the 4-hour chart, the pair traded as high as 150.88 before there was a pullback. The pair declined below the 150.20 level. There was a spike toward the 38.2% Fib retracement level of the upward move from the 147.63 swing low to the 150.88 high.
Immediate support is near the 149.65 level. The first major support sits near the 149.25 level. There is also a major rising channel forming with support at 149.25 on the same chart. The channel is close to the 50% Fib retracement level of the upward move from the 147.63 swing low to the 150.88 high.
The next major support sits at 148.40, below which the pair might gain bearish momentum. In the stated case, the pair could even revisit the 146.80 support level.
On the upside, the bulls are facing hurdles near the 150.50 level. The next key resistance is near the 150.80 zone. A close above the 150.80 zone could open the doors for more upsides. The next stop for the bulls might be 151.50. Any more gains might send USD/JPY toward 152.00.
Looking at Bitcoin, the bulls remained in action and pumped the price above $52,200. Ethereum, Solana, and other altcoins also extended gains.
Economic Releases
- US Producer Price Index for Jan 2024 (MoM) – Forecast 0.1%, versus -0.2% previous.
- US Producer Price Index for Jan 2024 (YoY) – Forecast +0.6%, versus +1.0% previous.
