USD/JPY on the Rise: Surges To Aim For New Highs

Key Highlights

• USD/JPY gained pace and cleared the 158.20 resistance.
• A major bullish trend line is forming with support at 158.20 on the 4-hour chart.
• EUR/USD is struggling to clear the 1.0765 resistance zone.
• The US Manufacturing PMI could decline from 51.3 to 51.0 in July 2024 (Preliminary).

USD/JPY Technical Analysis

The US Dollar remained well-bid above the 156.50 support against the Japanese Yen. USD/JPY formed a base and started a fresh increase above the 157.80 resistance.

Looking at the 4-hour chart, the pair settled above the 158.00 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). More importantly, there was a clear move above the 158.20 resistance.

The pair is now rising toward the 159.20 resistance zone. The first major resistance is near the 159.50 level. A clear move above the 159.50 resistance might send it toward the 160.00 level. Any more gains might call for a move toward the 161.20 level in the near term.

If not, the pair might dip again. Immediate support is near the 158.20 level. There is also a major bullish trend line forming with support at 158.20 on the same chart.

The next major support is near the 157.80 zone. A downside break and close below the 157.80 support zone could open the doors for a larger decline. In the stated case, the pair could decline toward the 157.20 level.

Looking at EUR/USD, the pair corrected losses, but the bulls are still struggling for a move above the 1.0765 resistance zone.

Economic Releases

• Germany’s Manufacturing PMI for July 2024 (Preliminary) – Forecast 46.4, versus 45.4 previous.
• Germany’s Services PMI for July 2024 (Preliminary) – Forecast 54.4, versus 54.2 previous.
• Euro Zone Manufacturing PMI for July 2024 (Preliminary) – Forecast 47.9, versus 47.3 previous.
• Euro Zone Services PMI for July 2024 (Preliminary) – Forecast 53.5, versus 53.2 previous.
• UK Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.3, versus 51.2 previous.
• UK Services PMI for July 2024 (Preliminary) – Forecast 53.0, versus 52.9 previous.
• US Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.0, versus 51.3 previous.
• US Services PMI for July 2024 (Preliminary) – Forecast 53.7, versus 54.8 previous.