Key Highlights
- USD/JPY climbed to a new multi-year high at 161.95 before it corrected lower.
- It traded below a key bullish trend line with support at 161.50 on the 4-hour chart.
- EUR/USD extended gains above the 1.0785 resistance zone.
- Oil prices might soon attempt to clear the $85.00 resistance.
USD/JPY Technical Analysis
The US Dollar remained in a strong uptrend above 158.00 against the Japanese Yen. USD/JPY surpassed the 160.00 and 161.20 resistance levels and traded to a new multi-year high.
Looking at the 4-hour chart, the pair traded as high as 161.95 and recently started a downside correction. There was a move below the 50% Fib retracement level of the upward move from the 160.26 swing low to the 161.95 high.
Besides, the pair traded below a key bullish trend line with support at 161.50 on the same chart. However, it is still well above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
Immediate support is near the 160.65 level and the 76.4% Fib retracement level of the upward move from the 160.26 swing low to the 161.95 high.
The next major support is near the 160.25 level. A downside break and close below the 160.25 support zone could open the doors for more losses. In the stated case, the pair could decline toward the 159.20 level and the 100 simple moving average (red, 4-hour).
On the upside, USD/JPY might face resistance near the 161.50 level. The next resistance sits at 161.80. The main hurdle sits at 162.00.
A clear move above the 162.00 resistance might send it toward the 162.75 level. Any more gains might open the doors for a test of the 163.50 zone in the coming days.
Looking at Oil, the bulls seem to be in action, and they might soon aim for more upsides above the $85.00 resistance zone.
Economic Releases
- US nonfarm payrolls for June 2024 – Forecast 190K, versus 272K previous.
- US Unemployment Rate for June 2024 – Forecast 4.0%, versus 4.0% previous.
