Key Highlights
- USD/JPY failed to clear the 150.85 resistance zone.
- It traded below a connecting bullish trend line with support at 150.30 on the 4-hour chart.
- Gold prices are moving higher above the $2,035 resistance.
- The US ISM Manufacturing Index could increase from 49.1 to 49.5 in Feb 2024.
USD/JPY Technical Analysis
The US Dollar remained well-bid above the 148.50 level against the Japanese Yen. USD/JPY climbed above 150.00 but struggled to continue higher above 150.85.
Looking at the 4-hour chart, the pair formed a high at 150.88 before there was a bearish reaction. The pair declined below the 150.25 support. It also traded below a connecting bullish trend line with support at 150.30.
The pair spiked below the 100 simple moving average (red, 4-hour) and the 23.6% Fib retracement level of the upward move from the 145.89 swing low to the 150.88 high.
Immediate support is near the 149.50 level. The next major support is at 148.80 or the 200 simple moving average (green, 4-hour). If there is a downside break below the 148.80 support, the pair could decline toward the 50% Fib retracement level of the upward move from the 145.89 swing low to the 150.88 high.
Any more gains might send USD/JPY toward 147.00. On the upside, the pair is facing resistance near the 150.25 level. The main resistance is near 150.85. A close above the 150.85 zone could open the doors for more upsides. The next stop for the bulls might be 152.00.
Looking at Gold, there was a decent increase above the $2,035 resistance and the bulls might aim for a move toward $2,065.
Economic Releases
- Euro Zone Manufacturing PMI for Feb 2024 – Forecast 46.1, versus 46.1 previous.
- UK Manufacturing PMI for Feb 2024 – Forecast 47.1, versus 47.1 previous.
- US Manufacturing PMI for Feb 2024 – Forecast 51.5, versus 51.5 previous.
- US ISM Manufacturing Index for Feb 2024 – Forecast 49.5, versus 49.1 previous.
