Key Highlights
- USD/JPY declined heavily before the bulls appeared near 152.00.
- A major bearish trend line is forming with resistance at 155.50 on the 4-hour chart.
- Crude oil prices remain at risk of more downsides toward $75.00.
- Ethereum saw bearish moves and might continue lower.
USD/JPY Technical Analysis
The US Dollar started a major decline from well above 158.00 against the Japanese Yen. USD/JPY declined below the 156.50 support to enter a bearish zone.
Looking at the 4-hour chart, the pair even settled below the 155.50 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, the pair tested the 152.00 support.
A low was formed at 151.93 before the pair started a decent recovery wave. The pair climbed above the 153.20 level. It surpassed the 23.6% Fib retracement level of the downward move from the 157.86 swing high to the 151.93 low.
On the upside, the pair could face resistance near the 154.20 level. The next resistance sits at 155.00 or the 50% Fib retracement level of the downward move from the 157.86 swing high to the 151.93 low.
The main hurdle sits at 155.50 and a bearish trend line on the same chart. A clear move above the 155.50 resistance might send it toward the 156.20 level. Any more gains might open the doors for a test of the 157.50 zone in the coming days.
Immediate support is near the 152.80 level. The next major support is near the 152.00 level. A downside break and close below the 152.00 support zone could open the doors for more losses. In the stated case, USD/JPY might decline toward the 150.50 level.
Looking at Ethereum, there was a sharp bearish reaction below the $3,350 support zone. If the bears remain in action, ETH could even test $3,020.
Economic Releases
- US Personal Income for June 2024 (MoM) – Forecast +0.4%, versus +0.5% previous.
- US Core Personal Consumption Expenditure for June 2024 (MoM) – Forecast +0.1%, versus +0.1% previous.
