Key Highlights
- USD/JPY declined heavily and even traded below 150.00.
- A connecting bearish trend line is forming with resistance at 151.80 on the 4-hour chart.
- EUR/USD could extend losses below the 1.0820 level.
- Gold gained pace and climbed above the $2,450 level.
USD/JPY Technical Analysis
The US Dollar started a fresh decline from well above 152.00 against the Japanese Yen. USD/JPY declined below the 150.50 and 150.00 levels to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 150.00 zone, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). A low is formed near 148.51 and the pair is now consolidating losses.
If there is a recovery wave, the pair could face resistance near the 151.00 level. The first major resistance is near the 151.85 level. It is close to the 50% Fib retracement of the downward move from the 155.65 swing high to the 148.51 low.
There is also a connecting bearish trend line with resistance at 151.80 on the same chart. The next resistance sits at 152.50. A clear move above the trend line resistance and then 152.50 could open the door to more gains.
Immediate support is near the 148.50 level. The next major support is near the 147.80 level. A downside break and close below the 147.80 support zone could open the doors for more losses. In the stated case, GBP/USD might decline toward the 146.50 level.
Looking at Gold, the bulls remained in action and were able to push the price above the $2,450 resistance zone.
Economic Releases
- US nonfarm payrolls for July 2024 – Forecast 175K, versus 206K previous.
- US Unemployment Rate April 2024 – Forecast 4.1%, versus 4.1% previous.
